Lets Face It, This is A Bitcoin Litecoin Ethereum Bubble
Coinbase is the #1 App on the Apple App Store and your Barber/Grocery Clerk/Grandmother are all buying in. Prices have surged unbelievable amounts in the past few days (let alone year). My hunch is that most people buying in now are trying to get rich and are not trying to escape the grasp of the evil Wall Street empire.
Keep in mind, just because there is a price bubble doesn’t mean the technology isn’t awesome. The prices of Bitcoin or Litecoin could go down 90% and the tech would be just as mind blowing.
Its also possible I’m wrong and that prices just keep going up. Many point to this chart showing internet adoption:
The key to all these tech was ADOPTION – people used them. This chart is also talking about ADOPTION and not PRICE. These are two different things, but brings me to a point:
People drawn in by trying to get rich might just stick around and ADOPT crypto tech.
Clearly millions of people are flooding into the crypto space, and if they don’t SELL but start to transact with each other using Bitcoin or Litecoin – then prices might not come back down.
Bitcoin Needs A Killer App
Just as email is what made people use the internet Bitcoin doesn’t have that killer app. Its hard to buy and sell crypto – its confusing. Coinbase has done just an OK job of being a Bitcoin gateway for people and they are crushing it. But still – sending payments from Coinbase to another person isn’t obvious. Thats not what Coinbase was designed for (it was designed to overcharge you for crypto purchases).
Maybe this is the App that turns Bitcoin into “Venmo” and drives adoption. Square’s founder and CEO is Jack Dorsey the CEO of Twitter. I couldnt find anything about the number of Square Cash users, but here is some insight on the app network.
The reviews claim that buying Bitcoin on the app is very easy and intuitive. People also trust Square.
All these people speculating on Bitcoin price could suddenly find themselves transacting quickly and easily using Bitcoin. They could adopt it. That might keep prices up, or even be a catalyst for higher prices.
In the end we’re in the first or second inning of all this tech. Prices will do what they will but its clear that crypto is here to stay.