At its current price of around $6,853.47 (as per coinmarketcap.com on the date this article was written – April 11, 2018), many believe that Bitcoin and other cryptocurrencies have finally burst their bubbles. Still, though, if we do the math, Bitcoin’s price alone is up roughly by more than 600% since February 9, 2011, where it hit pretty much the same value as US dollars. The debate continues: many experts believe that cryptocurrency as a whole is one big bubble: some are even claiming that the bubble has already burst. However, a coin always has two sides: there are also proponents who think that what’s been happening is nothing more than a normal correction in the market – not a popping bubble, and that this correction is normal considering the volatile nature of crypto. What’s certain is the fact that crypto has survived through a number of storms before, and that crypto is still here to play. As it’s growing into maturity, there will be many more milestones that it achieves, including – probably – all time highs and drastic corrections.

If you own a decentralized multi-cryptocurency wallet like our Blockchains.my (BCMY) digital wallet, you might be wondering: is crypto really safe at all? What will become of my assets if and when the bubble does burst? What should I be anticipating?

Read on for our objective analysis of what an upcoming bubble might bring to the table and how it might affect you (our users and future users).

Bubble in Short

A bubble is indeed, a bubble. Think of a literal bubble – don’t overcomplicate things. Like a soap bubble that children love to play with, a bubble is expected to pop.

In the crypto world, this bubble is argued to have formed from the way people are emotionally investing and buying crypto assets from their FOMO (Fear Of Missing Out). Eventually all the hype will go away, and people will start selling in mass for one reason or another, thus, declining the price and popping the bubble.

Here’s what we need to know: a bubble occurs in all markets out there. At some point in time, many markets will have or have had a period of FOMO which then triggered people to follow the mainstream and buy – resulting in a jump of prices, and then followed by mass selling and a crash. This has happened before in the gold and real estate markets.

In theory, this is what many people fear: that the very same kind of bubble is going to pop and bring the value of crypto down with its popping.

Potential Influence of A Bubble Burst

What will happen if the bubble indeed bursts?

As mentioned before, we will provide you with an analysis of what a bubble burst can do to your crypto assets in our wallet.

We will be focusing on the influence of a bubble burst to a decentralized multi-cryptocurrency wallet – in this case, BCMY.

Our BCMY wallet app, as explained on our site, has several smart features, one of which is that we allow for various kinds of crypto assets to be stored in our wallet. This includes DinarCoins and Gold Smart Contracts, which are backed by the price of gold and by specific gold bullion respectively.

What does this mean? Simple: even if the crypto bubble pops all the way down to zero, you would not end up crying and getting depressed like some people, if you took the correct actions within the wallet ahead of time. The real-life backing of gold for the aforementioned coins will see you still retaining some assets of value (despite the bursting bubble that happened in the market) should you own them. No matter what happens, you’ll still have the option of holding highly valued digital gold tokens – unless of course everybody starts forgetting their gold, which is very unlikely to happen, considering how gold is used in everyday life. These gold backed tokens retain the same hedging aspect as physical gold does.

BCMY also offers another unique and convenient feature that can act as a safety measure: our in-wallet trading option, where you can easily trade your assets. You can, for example, trade your Bitcoin for DinarCoins, which in turn will be safer if the crypto bubble indeed pops. This feature comes with the ability to view live pricing, so you are always up-to-date with what’s going on in the crypto world. You just need to set-up some simple APIs to start trading. Just remember not to allow any API to gain access to withdraw your funds!

By having your assets backed by gold (e.g. by converting them into DinarCoins), you can rest easy, knowing that they are more stable and more safe. When you need to cash out into fiat, or you want to change back into bitcoins or any of our other hosted tokens, nothing will change: you will still be able to do it. If you decide you want to get your wife that long-overdue diamond necklace that costs a fortune, you would still be able to. When your dog is having its birthday, you can treat it with some nice chicken dinner. Basically, any withdrawal or spending feature of the wallet won’t be affected, so you would still be able to send and spend your stored cryptos online or to buy things from various stores.

Thus, even if the worst case scenario happens, at least some of your assets will still be protected if you took prudent action beforehand in the wallet.

Conclusion

Despite this never-ending loop of arguments on a popping crypto bubble, we do hope – and believe – it is very unlikely that a dramatic burst will happen. Crypto adoption rate is getting higher and more and more people are getting exposed to the knowledge of the existence of Bitcoin and friends every day. Some governments, like Japan and South Korea, are even one-step-forward: they are planning to develop their own national cryptocurrencies, with some having already succeeded. These reasons alone, combined with other supporting factors (such as crypto’s cheap and private nature), have built a solid ground for crypto to prosper for years to come. We will see and hear much more of crypto in the future as we are entering into a new era of a technological breakthrough. If you haven’t considered opening an account with our BCMY wallet yet, well… there’s no time like the present.


https://99bitcoins.com/price-chart-history/

https://www.nytimes.com/2018/01/29/opinion/bitcoin-bubble-fraud.html

https://www.forbes.com/sites/cherryreynard/2017/12/22/is-it-possible-that-bitcoin-isnt-a-bubble/#3a7c944d3d3d

https://howmuch.net/articles/bitcoin-all-major-crashes

https://www.thebalance.com/gold-the-ultimate-bubble-has-burst-3970478)

https://www.investopedia.com/ask/answers/100314/when-did-real-estate-bubble-burst.asp