Scepticism, Speculation and Bubbles

Most of the doubters’ rhetoric revolves around

a

bitcoin being in a bubble and lacking intrinsic value. However, many critics misunderstand the concept of bitcoin. More pressing is that some people feel that cryptocurrencies, such as bitcoin, Ethereum and Litecoin, have enabled a greater movement of transactions on the black market for money laundering, terrorism and trafficking. In addition, cryptocurrencies provide additional loopholes for money to be laundered due to its lack of regulation by a verified third party.



Many Adam Smith fans and traditional economists feel that the bitcoin hype would eventually pass like the Dutch “Tulip Mania” bubble that took place from 1634 to 1637. Although the Dutch love affair with tulips during the mid-1600s was considered to be the first recorded financial bubble, the Tulip Mania of 1636-1637 was an episode in which tulip bulb prices were propelled by speculators to incredible heights before collapsing and plunging the Dutch economy into a severe crisis that lasted for many years.

https://www.bbntimes.com/en/technology/blockchain-why-it-is-the-future-of-technology-and-banking