When Will Bitcoin's Bubble Pop?

Economic uncertainties within the cryptocurrency market are nothing new. But in this era when cryptocurrency becomes subject to market speculation and is used as a commodity, and its use is widespread, outlooks seem stronger but less accurate than ever.

If Bitcoin were actually in a bubble, it would not surprise anyone, as last week we saw Bitcoin perforate the U$S 7.500 barrier prior to stabilising at about U$S 7.000 later this week. This record-high value was accomplished after CME group announced it would roll out a Bitcoin futures contract. We must remember that prior to this, the Bitcoin value had multiplied by ten in just one year.

Whether Bitcoin is or is not in a bubble is a matter for debate but we will never know for sure because as we know you do not get to know if it is a bubble before it pops.

Now, for the sake of the argument, we are going to treat the issue as if it was a known fact Bitcoin is in a bubble. The real question here is when will the bubble pop. Another factor in bubbles is that you do not exactly know when they will pop, otherwise they could be avoidable. You may suggest, but you will never know for sure.

Bitcoin is becoming accepted by many important businesses in the world, its usage and its appeal for investors are growing and the recent CME announcement does nothing more than reinforcing Bitcoin as the cryptocurrency. This makes it seem unlikely a burst of the bubble would be seen anytime soon, but although as much love you might think Bitcoin receives, it still retains many enemies, like governments due to tax pressure and how to treat cryptocurrencies in general in a legal sense. This makes any action by governments or by big corporations unpredictable and this Bitcoin feast and all the media fuss about lucky investors could become horror stories at any time. This is why it's important to invest in cryptocurrencies other than bitcoin, like steemit as per example.

However, as this is just an analysis of the situation, we do not exactly whether or when the bubble will burst and what damage could it cause - and who it would damage. It is nonetheless important to be fiscally responsible and to diversify investments. A burst of a bubble of these characteristics would be seen coming, especially by big interest groups, so it would not be such a loss - at least for large investors. It could still be a great weep for developers, miners and small investors who did not diversify where their savings were invested or exchange their BTC early enough.