Is Bitcoin a bubble?
Cryptocurrency

Is Bitcoin a bubble?

Released in 2009 as open source software, Bitcoin has quickly become one of the world’s most notable cryptocurrencies and payment systems. The digital currency is so lucrative because it’s decentralised by design, meaning it doesn’t need access to a central bank or administrator.

Instead, it works on a peer-to-peer basis, and you can make transactions with other users directly without worrying about bureaucratic processes. When you make a transaction with the currency, it’s recorded on a public distributed ledger, a blockchain.

People have flocked to the currency over the years, and according to a study by the University of Cambridge, around 2.9 million to 5.8 million users are accessing the cryptocurrency. The value of Bitcoin has grown hugely over the past few weeks, suggesting that it's going through a golden age.

Confused by cryptocurrencies? Check out: What you need to know about cryptocurrencies

In fact, the BBC reports that the currency reached $17,000 (£12,615) on Friday, December 8th. However, while this growth has been unprecedented, there are people who believe that it’s just a “bubble” and that the currency will soon decline. Bitcoin was dealt a blow when gaming platform Steam stopped accepting Bitcoin payments, for example. So, what does this mean for the wider business world?

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Nicholas Fearn

Nicholas is a technology journalist from the Welsh valleys. He's written for a plethora of respected media sources, including The Next Web, Techradar, Gizmodo, Lifehacker, TrustedReviews, Alphr, TechWeekEurope and Mail Online, and edits Wales's leading tech publication. When he's not geeking out over Game of Thrones, he's investigating ways tech can change our lives in many different ways.

Comments

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Jean-Pierre on December 19 2017

Dear Nicholas, OK, let's take for granted that Bitcoin is less bureaucratic. But: - What about the limited number of actual bitcoins which will be soon be hit? - What about the HHHuge - and ridiculous - cost of the Blockchain management upon which the concept is constructed? - What about the established trend of the diminishing number of miners, which xe expect to reach in time a point where trust and security will disappear? - What about the HHHuge latency between successive transactions in the bitcoin blockchain?

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Jean-Pierre on December 19 2017

Dear Nicholas, OK, let's take for granted that Bitcoin is less bureaucratic. But: - What about the limited number of actual bitcoins which will be soon be hit? - What about the HHHuge - and ridiculous - cost of the Blockchain management upon which the concept is constructed? - What about the established trend of the diminishing number of miners, which xe expect to reach in time a point where trust and security will disappear? - What about the HHHuge latency between successive transactions in the bitcoin blockchain?

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