When will the cryptocurrency bubble burst?

A brief look at the world of the new electronic world currency.

History.

Cryptocurrency is a peer-to-peer decentralized electronic form of money based on cryptography principles to secure the network and verify transactions.

Most cryptocurrencies use a Distributed Database as the backbone of their system, called the Blockchain.

 Bitcoin was introduced in 2009 and became the first successful decentralized cryptocurrency.

Due to the open nature of its software, many developers were allowed to experiment with its code and modify it (forking).

Since then, many new cryptocurrencies have been created, in which efforts have been made to improve or even add functions such as faster transactions, greater anonymity, etc.

The main feature of cryptocurrency is its decentralized character and resilience to any form of control and intervention.

The encryption market cap is estimated to reach $ 5-8 trillion in 2021.

Since the release of bitcoin in 2009, more than 6,000 cryptocurrencies have been created.

And some of them are based on the same system that Bitcoin uses.

But is there an upward limit?

Bitcoin set another new record at $ 68,564, according to the Bitstamp exchange at 02:58 GMT.

 BTC has risen 11.73% since early November, following a sharp rise of 42.26% in October.

The "leader" of cryptocurrencies is now worth $ 1.289 trillion and is on the verge of overcoming the capitalization of silver.

Bitcoin market dominance has increased to 43.8% due to rising prices.

On October 20, BTC reached $ 67,000 for the first time, the day after ProShares Bitcoin ETF "BITO" began trading in the US.

Eventually, Government Banknotes will be replaced with Cryptocurrencies;

Former CEO of Citigroup Inc. Vikram Pandit predicted that most financial institutions would start trading crypto assets with the inevitable growth of a decentralized industry.

Pandit spoke at the Fintech Festival event in Singapore and told Bloomberg that this "change" would be implemented sooner or later, in one to three years.

"In one to three years, every big bank or securities company should be actively thinking about the question, shouldn't I also be trading and selling crypto assets?" Pandit told Bloomberg.

In addition, Pandit has invested in decentralized crypto companies such as Coinbase Inc. and Alchemy Insights Inc and has stressed the importance of Central Bank Digital Currencies (CBDCs), calling them "high hopes." He noted that central banks worldwide should accept and adopt CBDCs, if not the decentralized cryptocurrency, as economies prepare to enter the Web3.

"My great hope is based on the fact that central banks around the world will understand the benefits of CBDCs and move forward with their acceptance and adoption; 

CBDCs will be available to you and me and every other participant. of the market worldwide, "Pandit told Bloomberg.

Conclusion

It is too early to say what will happen with cryptocurrencies in 2-3 years.

It is certainly something new, and as new, it often frightens the conventional and classical thinking of the economy.

A new world is being born before us.

As long as they let him grow up and dominate.

Only time will tell what will happen to cryptocurrencies.

"To see your civilization when the power goes out," Popular is saying.

This article is for informational purposes only and does not replace specialized consulting services with professional experts.

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