It’s time to understand behind cryptocurrencies. This cryptocurrency bubble analysis study will make that difference for you. Boat’s Coin is the place for next-level cryptocurrency analytics and investment building strategies.
“Are cryptocurrencies a bubble?”
This is an essential question that investors ask themselves. Someone regularly, from time to time.
Because Boat’s Coin as part of the structure has cryptocurrency background, we are doing and publishing this study. We are constantly monitoring the market and ensure that this study stays updated with latest findings for the public.
Deeper Bubbly Analytics: Understanding Intrinsic Value and Volatility
#1 Bubble Reason – Intrinsic Value
Our study finds that the Intrinsic Value is the first of leading reasons for claims the cryptocurrencies are a bubble and not a good investment.
The Indian Finance Ministry said: “Cryptocurrencies don’t have inherent value and are not supported by any form of assets.”
We can without any doubt confirm that this statement is pretty correct.
There is a genuine and intensified risk of investment bubble which can cause an unexpected and elongated crash as a result of these reasons.
The main bubble fair question: If The Bitcoin Bubble Bursts, This Is What Will Happen Next?
This is a frequently asked question, and we find a quality article that explains this question. You can read this article to educate yourself about that scenario here.
Bullet Proof or Better Say “Bubble-Proof” Cryptocurrencies Exists: Cryptocurrencies that are connected with tangible assets exists!
People must be aware that start exists cryptocurrencies that are connected with assets and real industries now. One of the first of these type of currencies is our Boat’s Coin.
Boat’s Coin is not just “cryptocurrency” without anything behind. Boat’s Coin is a platform that can be stable and survive if it happens that Boat’s Coin on cryptocurrency market drop down radically because our main business is connected on the real value of boats and these assets. Boat’s Coin can work as usual even in conditions of a total crash of cryptocurrency market. Investors in
Boat’s Coin just need to continue to hold the Boat’s Coins as they know that real asset is behind and that system will not go in any “bankruptcy” or similar disintegration level.
Who better understands cryptocurrencies, he or she must be aware of differences in intrinsic values between different cryptocurrencies!
A person who understands looks at “bubble” situation lot more precise and with higher knowledge.
So the people must be aware that same bubble risk does not exist in cryptocurrency that is not backed by any kind of assets and in cryptocurrency that is backed by some kind of assets! The difference in bubble risk between these two in cryptocurrency type is radically different.
This is because that is pretty not professional enough when a lot of Internet websites and experienced advisors “screams” about bubble effects in Bitcoin or any other cryptocurrencies without differentiating them in the first place.
#2 Bubble Reason – Volatility
Our study finds that the volatility is the second of leading bubble reasons.
We think it is possible that there will be the crash(es) in the whole crypto market again and again. In fact, in the past, we’ve seen a lot of these crashes too and had no reason that it doesn’t happen again.
People must be aware of cryptocurrencies volatility.
Cryptocurrency is volatile in nature. Radical dropping in value cryptocurrencies is not the same as the radical dropping of shares of some company. Very often after radical dropping of shares of some companies, some company goes into bankruptcy, but the cryptocurrency just stays radically low in price usually.
That “bubble” explode in cryptocurrencies world must happen at a step more destroying elements than usual let’s say “regular world” bubble situations.
Bubble Fundamentals: Why bubble happen basically?
If someone understands bubble fundamentals correctly, he can protect his investments and without any doubt act as more quality investor.
So, how accurate can anyone know main bubble behaviors? Simple, you need to find answers in the past.
We must be aware that bubble effect exists in all types of investments like stocks, bonds, ETFs, contract for differences, linked insurance policies, real estates, etc.
So what in the past show us a worrying bubble sign?
The most worrying sign of the implosion of any type of investment system is breakdown against the amount of debt and credit creation.
And that’s it.
Only less experienced investors often do not clean or see the vital investment moments like that one.
So when we know it, and when we apply those rules on cryptocurrencies, next logical question is: where is the debt in cryptocurrencies?
And the answer is: no exist!
So look at bubble analytic in that way.
The main bubble critical sign can’t exist at all in cryptocurrencies.
All other investment ways easily build debt on opposite side of the investment. As an example: money itself make debt through money printing. History shows how real estate market creates debt by too much-unsecured loans below real estate etc.
So we can conclude that cryptocurrencies are more stable itself, only with no depth behind the structure.
Understanding what cryptocurrencies are in real life
Understanding what cryptocurrencies are really in real life is next essential part of this bubble study.
Considering bitcoin solely as an investment logic says simply to anyone that its value cannot rise indefinitely.
Either at some point, some investors will start selling, and bitcoin’s price or any other cryptocurrency will fall. There is a status that’s the same as that of any investment as it is supply and demand balance.
Supply and demand is the main determinant of its market value.
However, above all confusion creates the problem that nobody is sure whether bitcoin is money or investment
Our study has crystallized the answer: Bitcoin is a virtual asset in search of the price equilibrium.
This price discovery process is unlikely to proceed without the market price getting excessive. It’s also pretty possible that the “real” price of bitcoin is higher than what it trades for today. But using history as our teacher, it’s more than likely that this process of price discovery will be volatile, and that the price will “pump out” down before a true pricing mechanism is established.
Regardless of whether you will apply Boat’s Coin cryptocurrency or any other, I hope you enjoy the study, and you can have a clearer look into bubble risk analytics now.
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If you have any questions or comments, please contact us, and we are going to answer every question as much as we can.