Cryptocurrency (bitcoin)

There is an ongoing bloodbath in the digital currency market space, checking coin market cap, I know for a fact that any new, amusing technology that surges with a disruptive element, has in one way or a bubble attached caution hovering around its neck. Bubbles, on one hand, are important for the technology to thrive, the speculations of falling apart around these developments propel analysts in zooming on jaw-dropping breakthroughs which eventually leads to adoption or success.

Cryptocurrencies experienced an all-time high, in the case of Bitcoin, an over one thousand five hundred percent which is translated in dollar terms almost $ 20,000 was reached in the last quarter of 2017. This bullish leap could not be sustained due to features of the market and other externals interferences thus the plummeting of the premier coin selling at $9,800 this shock resulted in the significant pullback since last year brooding skepticism.

Volatilities are an intrinsic part of basic investment thus it is important to look at the bigger picture and not to focus on the daily market prices. In my personal opinion, I am of the strongest view we should look beyond the face value and start thinking long term not focus on the current trend because we will end up missing out on the bigger picture.

Bitcoin cannot be predicted in the short term and these are few reasons I think why:

1. The market in my view can easily be manipulated by people who have significant capital these are the “Wales” in the market.

2. Reminiscent of the dynamics of investment, news drives the market, emerging regulations and speculative regulations also tends to be a major driver of prices

3. Attack on an exchange by hackers is also another factor that affects prices

The existence of these uncertainties or unknowns makes it prudent to consider a long-term investment. We have to think long-term by asking ourselves intuitively the plausible advantages this new technology would bring to us in the future or what will be its relevance in the world?

We have to ask ourselves if we understand the new technology, and fully grasp the knowledge needed to see this vision for the future to convince ourselves that our investment is worthwhile. It is important to understand the technology into which you are investing, and be sufficed by the decision you intend on taking.

It is imperative you are contented with making a decision in this direction else the resulting situation would be any time there is a correction or a huge crash in the short term you will always panic because you don’t know the fundamental value of your investment in that sense education is extremely important. We need self-education to enable us to understand the blockchain technology and its prospects.

It is not advisable to take a loan or credit to invest in this new technology, that is why in my opinion according a popular cliché that I also believe in which says “do not invest what you are not ready to lose”, ideally, we know blockchain technology has come to stay and to give birth to new economy like the dot-com and the train revolution in Britain years ago what we aren’t sure of is its short-term prospect. We have to think twice because Cryptocurrency is not the quick easy money-making avenue, to me, I say “Cryptocurrency is highly volatile and hopeful with higher returns in long term”.

We must note that all New technologies generate bubbles, after reading about the Train technology (railways Mania) with 200 companies that emerged in Britain, the dotcom crash and what happen on their arrival on the scene so many people created companies which resulted in bubbles in their era, from this perspective I believe that bubbles have their own role in mass adoption of new technology, therefore I say Bubbles are very important elements in new technology adoption. Internet (dot com) and Railway mania create new economy so will blockchain in my opinion Greed, fast and easy moneymaking people give birth to bubbles in every new technology.

We need to note that. Every new technology needs an infrastructure to drive the new economy created, so in the case of Blockchain technology it is not new we have seeing so many Initial Coin Offerings (ICOs) coming up with so much investment, this will go a long way to help build the needed infrastructure for our all-time great vision. We shouldn’t only refer to bubble for their negative effect because people lose monies but we should also highlight the positive side of it which I know that without enormous investment into the infrastructure the new technology will never be possible.

My question is Do we have cryptocurrency bubbles? Affirmative! And I believe it is going to take a long time for us to arrive because the gap between the technology and the price of the ICOs is huge noting that the ICOs are prepaid.

The blockchain technology has come to stay and we have to embrace it now or regret it later, I believe African youths should not be left out in having their bite at this cherry, it is the time we get caught up in the wave of educating ourselves and others on this new technology.

I will recommend that our academicians both in public and private institutions should take a microscopic look at this technology, its programming component and financial prospect to be integrated into our universities more especially, IT and Business curricula and not to wait for leftovers centuries after other continents are done exploring it.

Africa needs to be expedient in preying over this innovation, let us embrace it before it is too late, time to go for the meal on the table instead of waiting to eat the leftover when the pay master is done eaten.

Written by: Oliver K. M. Aziator
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