And that’s why bitcoin is not a bubble at all.

Many public figures in the traditional financial sector, including JPMorgan CEO Jamie Morgan, criticized bitcoin, describing it as a bubble. However, because of the decentralized, mathematical and transparent nature, calling bitcoin a bubble of any kind will be extremely wrong.

Bitcoin is not a bubble, contrary to the widespread and dishonest statements of bank representatives. In bitcoin, there was a bubble in 2013, when demand for bitcoin rose to such an extent that the market could not support it anymore, and the cost of bitcoins fell from $ 1,300 to $ 200. But it will be inaccurate to call bitcoin himself a bubble just like you can not call a bubble of any Amazon or Tesla.

Until April of this year, analysts described the exponential growth of Tesla’s value as a “bubble”, and exactly the same analysts did with Amazon throughout the 20 years of the company’s existence. Six months ago, Matthew Debord, the editor of transport in the Business Insider, wrote:

“At the moment, the Tesla bubble seems obvious, and it seems obvious from the very beginning of this year. The difference is that its growth is so great that it becomes frightening. “

Another “expert” of Greenlight Capital, David Einhorn, stated that Tesla is a bubble that will not burst soon, but a bubble. “Over time, we should expect that these bubbles will burst,” he says.

It is important to understand that such a trend is inherent in any growing company, technology and start-up. Analysts and experts quickly refer to anything as a bubble, based on rapid growth in value and exponential growth.

From 2013 to 2017, the price of Tesla shares increased from about $ 20 to $ 302, with many minor and significant adjustments. In December, Tesla’s share price fell by more than $ 100, from $ 250 to $ 150, due to the company’s financial problems. Nevertheless, in time Tesla recovered and developed a sustainable business, a market and, most importantly, a consumer base similar to that which turned bitcoin into a stable financial network, a reliable market and tens of millions of users.

In addition, it is unfair to say that the bitcoin market, which has similar liquidity and trading volume, as Apple, is the most liquid stock market in the world with a trading volume of $ 3.3 billion, because it has grown significantly since its inception in the 2009 year. Bitcoin is more legitimate than most other systems, as one of Apple founders, Steve Wozniak noted. At the conference Money2020 Wozniak noted:

“There is a limited number of bitcoins that will ever exist. Gold is mined, mined and mined. Maybe. In the world there is a finite amount of gold, but bitcoin is more mathematical and settled, and no one can change mathematics. ”

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