Facts shatter the Bitcoin bubble theory, and investors are seeing the power of Bitcoin

Is there anything more tragic than making a fortune and then losing it all just as quickly? Whether in bull or bear markets, the market provides investors with opportunities to make money, but for many people, market bubbles are something to be feared or appalled by.

What would happen if all their “hard-earned” profits suddenly disappeared when the bubble burst?

However, we have seen a resilience among Bitcoin investors who have chosen to place their trust in the world’s first cryptocurrency.

Naysayers and pessimists

Recently, Forbes contributor Bryan Rich published an article titled “Is Bitcoin a Bubble?” Rich wrote:

“If you’re looking for a warning sign as to why the trend in bitcoin may not be sustainable, look no further than global markets. This is not an environment that inspires confidence.”

He also went on to present the theory of the Chinese stock market and how they are taking over the global market. The New York Post quoted Abigail Johnson, CEO of Fidelity Investments, who said, "It's no accident that I'm one of the few people who came from a large financial institution and stood in front of you and didn't give up on digital currency." Like Abigail, there are many people who also see Bitcoin as a currency with real applications and uses.

They also note that, like any other currency, Bitcoin emerged out of nowhere and its value comes from the trust of its users. Since its creation in 2008, Bitcoin has stood the test of time, despite accusations of being a Ponzi scheme, a crime currency and other unproven and unfounded claims.

Bitcoin is important to the world

Bitcoin has become the foundation of a new economic system that is changing the way the world views international finance. The technology behind this currency has spawned other types of cryptocurrencies, also known as altcoins, which have their own user bases and applications.

Bitcoin has become a currency of choice in troubled regions of the world where national currencies are under pressure due to government mismanagement or other reasons. Whether it is Venezuela or Nigeria or India's demonetization fiasco. In addition, some governments are also widely accepting Bitcoin, such as Japan, which was the first to announce the recognition of Bitcoin's currency status.

Tim Draper, founder and executive director of Draper Fisher Jvrvetson, explains the importance of Bitcoin.

He said:

“In the long term, Bitcoin is so important to the world economy that I suspect the price will continue to rise. However, I think it will be in fits and starts. The importance of Bitcoin revolves around global liquidity, simplified and lower costs, and less friction in cross-border transactions.”

Some parts of the world are more enthusiastic about Bitcoin

When it comes to Bitcoin, China and Japan are ahead of other countries and regions. China is home to the Bitcoin mining capital, while Japan is a leader in the adoption of digital currencies, including Bitcoin.

While Bitcoin cannot be relegated to one region, Tim Draper said:

“I think Bitcoin is a global phenomenon now, so the demand for Bitcoin is coming from all over the world. I know China is using Bitcoin to send money to other countries more easily, and people in countries like Argentina and Cyprus are fleeing to Bitcoin because their own currencies are no longer usable or have depreciated. And in Africa, Bitpesa is making it easier to buy and sell Bitcoin.

As for East Asia, Bitcoin has been successful in Japan and other cryptocurrencies are also on the rise. Kagayaki Kawabata of Coincheck exchange added:

“I think Japan has contributed a lot to the overall price increase of cryptocurrencies. On Coincheck, users can buy and sell 12 different cryptocurrencies. As with Bitcoin, we are seeing a surge in other cryptocurrencies. People are buying into the arrival of another Bitcoin.”