Every day is a record day and every day investors ask themselves how long this price rally should continue. Many investors fall victim to their own rational attitude, which tells them: That can’t be, double-digit price gains are tantamount to overheating in the long run, as there is no fundamental justification for the rapid price rises.
In parts, the statement is also quite correct, because fundamentally with Bitcoin formula, Ether, Ripple, NEM etc. not much has changed
No groundbreaking updates have come out in the last few days and states have not issued any particularly crypto-friendly regulations. In short: Bitcoin Formula Review 2018 » Full Scam Check Technically speaking, the majority of crypto currencies are still at the same level as they were before the price rally of recent weeks. Also, Bitcoin formula merchant acceptance has not improved much, especially as high transaction costs make paying for everyday items less attractive.
More decisive than the facts or factual arguments, however, is the mood on the stock markets or among investors. Currently, the largest crypto advertising campaign ever is taking place. Virtually every news medium has reported on Bitcoin & Co. Nobody can escape the crypto hype anymore. No matter whether in the daily topics or at the baker around the corner, people everywhere talk about Bitcoin.
For many people it is no longer enough to just talk about it, but the urge to become a part of the crypto community is constantly growing. Millions of new investors are pushing into the market to secure a piece of the big pie. The motto is: “To be there is everything. Even less digitally-affine people want to invest in the new asset class at any price. In addition, regulated financial products, such as the recently issued Bitcoin futures on the Chicago Futures Exchange, facilitate access to the cryptosector.
There are good reasons why the 2018 rally will continue for Bitcoin trader
If the total market capitalization of an asset class rises from 200 billion US dollars to over 600 billion US dollars within two months, for many Bitcoin trader equity analysts this may equate to massive overheating, if not a bubble. But this is something that is forgotten: Crypto currencies are not an established asset class like stocks or bonds that have been around for decades, even centuries. To date, there has simply been no awareness of crypto investments among the Bitcoin trader.
So if within a few weeks a not inconsiderable part of the world’s population with several trillion euros or US dollars in their backs becomes aware of a completely new asset class with partly very good buying arguments, then a total market capitalisation of over 600 billion US dollars is no longer so special. In the context of the new attention, there is no reason to speak of a bubble, at least for the established crypto currencies. Investors around the world are in the process of “catching up”. Accordingly, it is perfectly normal for tens of billions to flow into the cryptosector every day.
Many crypto funds will not be launched until 2018, and many people, especially institutional investors, will not be able to make the decision to invest part of their money in crypto until 2018. The result is a continuous inflow of capital into the crypto sector.
The danger does not come from a Bitcoin bubble, but from the side effects: There is a large number of insubstantial or even fraudulent new crypto currencies by ICOs, many crypto service providers such as stock exchanges are overloaded and scaling problems make Bitcoin transactions slow and costly.