Up – Down – Crypto Bubble?

These days most digital coins are (still) going down. Did the bubble burst? I don’t think so, it is rather an adjustment, since most market rates were at all time highs. Regarding cryptocurrency and related business models I believe it is too early to speak of a bubble. That is why:

  • Bitcoin has been around for some years now. The concept was first mentioned in 2008 and published as Open Source code in January 2009 by Satoshi Nakamoto. The currency is still there and people keep trading it. More and more stores accept Bitcoin: https://www.cryptocoinsnews.com/accepts-bitcoin
  • With Ethereum not only another digital coin but a concept of smart money, contracts and applications was introduced. This is a foundation for new promising business models and has a high potential for disruption in many industries: It is a new transaction layer in the internet which allows to build in its shareholders and customers at the same time by using smart contracts.
  • Based on Ethereum new token or coin sales take place. With the initial coin offering (ICO) founders seek for world wide funding for their ideas. Many ideas will fail, a few will be successful. This is just like funding startups, but a lot easier, since investors only have to buy the new coins. Anyone can invest and anyone can lose their investment if the business does not succeed.
  • Cryptocurrencies and smart contracts will become more and more a new way to make business. But of course, this does not mean every coin or new business idea will last.  Before investing make your due diligence, be patient and also be prepared to fail.

So, there is not one big bubble, but great opportunities and also many risks to fail in the space of smart money and contracts. 

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