Disclaimer: The information in this blog represents the opinions of its author and is for educational purposes only. It is not intended as investment advice. Cryptocurrency markets are extremely risky so you should only invest money you are willing to lose.
Bring On The Bubbles
If the cryptocurrency market is a bubble, I say "bring it on".
On any given day you can usually find several so-called "analysts" and "experts" calling the $250 billion cryptocurrency market a bubble that is about to burst. These are the same analysts and experts who were calling Amazon's valuation a bubble for nearly two decades.
Facebook Before The Ads, Starbucks Before The $5 Coffee
Remember Facebook before it was making $36 billion in online ad revenue? Sure it had lots of traffic, but many analysts were doubtful about its future monetization prospects.
As recently as April of this year, financial experts were describing Tesla's exponential increase in value as a bubble.
Remember Starbucks before the $5 cup of coffee?
The Bubbles Nobody Talks About
These are the bubbles nobody talks about. Why? Because all those Deputy Downers want the word "bubble" to evoke a grossly overvalued asset that ultimately crashed and burned leaving its hopeful investors destitute. But what happened to the bubbles mentioned above?
Eliminating The Middleman
Amazon didn't just sell stuff online, they reinvented retail - revolutionizing the supply chain and eliminating the middleman.
Facebook took all that stuff that people just can't resist sharing about themselves on social media and reinvented advertising, using big data to turn it into a hyper-targeted, super-specific precision science.
Tesla took technology that was way ahead of its time and turned it into a sustainable business, a predictable market, and a loyal consumer base.
Starbucks, well, they essentially made it de rigueur to pay five bucks for a "gourmet" cup of coffee.
The Wisdom Of Crowds
Sure crowds can be irrationally exuberant, but they can also be wise. In all of the above cases smart (and now very rich) investors with vision had the foresight and the chutzpah to stand up to the naysayers and envision the potential value in a new technology before its infrastructure had been developed - even before its most valuable use cases had been imagined.
Rewriting The Old Rules
In the case of blockchain and cryptocurrency there is no question that decentralization is rewriting all the old rules. Blockchain technology exploits the asymmetry of cryptographic math to create a chain of transactions that is easy to verify but nearly impossible to hack, manipulate, replace, counterfeit, or corrupt, so it's a no-brainer as a disruptive solution to huge swaths of the financial industry, eliminating the middleman just like Uber did for taxis and airbnb did for hospitality.
Data That Verifies Itself, Contracts That Enforce Themselves
The numbers for the financial industry are huge, but data that verifies itself? Contracts that enforce themselves? Many of blockchain's most valuable use cases have yet to be imagined.
From Mangos To Mars
When Frank Yiannas, Walmart's VP of food safety asked his staff to tell him where a certain mango came from, it took them 2 weeks of sleuthing to figure it out. Now, using blockchain, it takes them a second. From food safety to self-driving cars to missions to Mars, blockchain has myriad applications that haven't even been dreamt of.
So next time you hear someone talking about the "cryptocurrency bubble", instead of the kind that goes "pop", imagine the kind that goes "cha-ching".