Bubble

Inside the Bubble - Where Are We Headed?


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We've all heard of it.  We've all been wondering.  Are we in the early stages of another crypto bubble pop?  This isn't an article to fearmonger anyone into panic selling their cryptos.  I keep seeing news outlets saying that we are about to experience a pop in the "Crypto Bubble".  As with anything, everything is speculative. 

What does that even mean though?

Let's take a look at what a crypto bubble even is and if we are headed towards another crash.  

 

I am not sponsored by anyone or anything mentioned in this article. 
This is not financial advice.  I am not a financial advisor.
Please do your own research before making any decisions before investing. 
This article is meant for educational purposes only.

 

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And I'm sitting over here thinking blowing bubbles is cool. 

Well, apparently not for the crypto world.  The "bubble" I keep referring to is a speculative bubble placed around primarily Bitcoin, as it dominates the market and cryptos tend to correlate with Bitcoin with prices rises and falls.  Individuals fear that the drastic rise of Bitcoin in 2021 alone is the front for another bubble pop, or market crash.  These individuals have been more vocal lately with the uproar caused around Dogecoin.  Some fear that with Dogecoin rising for no apparent reason, as it is still basically useless at the time of posting this article, investors have no idea what they are doing with their money and only following the new trends.  

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With Dogecoin soaring to new heights, reaching an all-time-high of $0.4500, people are even more cautions and fearful of the crypto market in its' entirety.  The biggest argument I am seeing across the board is that "people do not even know what they are investing in when they purchase crypto.  All they are looking to do is dump money somewhere, pray others join in on the hype, and dump when the price is high to get rich quick". 

While I am sure that this is the case for some people, I strongly believe that the vast majority of investors believe in the crypto they posses and are excited for growth within their respective foundations.  For nearly every crypto on the market, you can find an online community pertaining to it.  These online communities share their thoughts and ideas, get updates from their foundation, and, of course, post memes.  

If everyone is generating excitement and buying into cryptos, then why would it crash?  Well, to me, it appears as if this "bubble" everyone is afraid of is just typical motions of any market, really.  Prices climb, prices fall, prices stabilize.  The only difference is the amount of decrease in value for the crypto.  During typical bull runs, cryptos see an increase of 25-50% in value, then it drops off to around 15-30% of that new all-time-high, then it will meet resistance and breakthrough to achieve new all-time-highs.  During the last market crash, Bitcoin saw a decrease in value of 65% from January 6, 2018 - February 6, 2018.  It took Bitcoin until the end of November 2020 to reach the price it was prior to the crash.  That's a hard hit but, as we can see, it's bounced back more valuable than ever over time.  The market can't just go in a straight line, directly "to the moon", forever.  It would be awesome to just invest in something and know for certain you'll get rich no matter what, but life doesn't work that way unfortunately!  

 

Photo by Tim Gouw from Pexels

 

But what does that mean for us now?  Well, as we all know, crypto is highly volatile.  You see that word everywhere.  We will just have to wait and see what happens before anyone starts to panic. 

Personally, I believe that we won't be experiencing a crash like the one back in 2018.  I believe this because of the attention that Bitcoin and cryptocurrency has been getting as a whole lately.  More and more people, even massive corporations and investment firms, are interested in Bitcoin.  This momentum should save the market from another crash, as more and more people understand the importance and value of Bitcoin each day.  I am no financial advisor though, and I am definitely no expert.  


My personal opinion is not concrete fact that this is what's going to happen.  Please take this information with a grain of salt, do your own research whenever you have free time, and come to your own conclusions!  Don't burst your own bubble!

 

Thanks so much for reading!  Please feel free to follow my page for daily blog posts about crypto news, updates, and research!  Have a wonderful day! 

 

Donations and/or tips are never required, but are always greatly appreciated!  I have my Exodus Wallet addresses down below for BTCETH, and VET if you wish to contribute to the blog!
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Gongo
Gongo

I like to write about anything crypto! If you are also on Hive/LeoFinance, give my page a follow at leofinance.io/@cryptosota!


Keeping A Close Eye on Crypto
Keeping A Close Eye on Crypto

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