Few days ago, Robert Shiller addressed this question regarding the cryptocurrency field ‘does it resemble a dotcom bubble or a real estate one?’..
Robert Shiller, well-known economist and owner of a Nobel Prize has raised this subject these past days.
Firstly, there is a major difference between dotcom bubble and real estate bubble.
The debts bubble, the same as real estate bubble, that happened in 2000 United States, has left behind many unsolved issues and has opened one of the biggest financial crisis, that particular time.
The last debts bubble has left more than 2000 legislation pages and 700 billion worth of bailouts.
The technology bubble, on the other hand has financed the recovering of optical fiber network and paid for 3G network studies. Moreover, it fueled the development of smartphones, algorithm searches on Google, big data logistics and economical markets, social media and platforms as Airbnb and Uber.
Therefore, in a time where cryptocurrencies are for certain labeled as bubbles, take as example the Dogecoin market cap of over one billion even if its software, haven’t been updated for a century (two years to be more accurate).
The real question is ‘what kind of bubble are we standing in?’.
Bitcoin and millions of altcoins, considered as clones or mutations of the authentic virtual coin are too small for the financial system to act on any sorts of interventions.
Taking into account the warnings that the decentralised money are raising to colect fees and for the financial surveillance, the fact that the governments are trying to save the system from the hole that it is heading towards, is not really a problem.
Hence, the cryptocurrency users should be on their own – if someone trades with a certain virtual coin and loses the money, the losses will be limited to the investment.
We know a thing for certain, a good thing has came out of this bubble of debts, even if it is consequential, if the crisis wouldn’t have shaken the trust in financial institutions, probably we wouldn’t have had Bitcoin today.