Bitcoin critics believe nothing good will ever come out of crypto, labeling virtual currencies an outright bubble. However, bitcoiners and crypto enthusiasts are entirely undeterred by the criticisms of people in the outside world or even the massive bloodbath that pushed the price of bitcoin down to $6,000.
Bubbles are Good Things
Bitcoin and other cryptocurrencies have lost at least 50 percent since the beginning of 2018, giving more fuel to the critics rhetoric. While critics and crypto doom predictors were thinking that this is the beginning of the end for blockchain money, Bitcoin heavyweight, and fund manager, Bill Miller thought otherwise.
Miller stated that the recent price crash is a good thing for the entire crypto economy. The business mogul opined that the crash helps to attract more funds into the industry as seasoned investors always buy the dip.
— Charlie Shrem (@CharlieShrem) April 9, 2017
Miller is no small player in the investment game, either. The business mogul founded Miller Value Partners (MVP) in 2016, a fund he says has 50 percent of its investments in bitcoin. As reported by the Wall Street Journal in October 2017, when the price of bitcoin was less than $6,000, MVP1 had already made over $150 million.
The entrepreneur had his breakthrough as a stock picking fund manager at Legg Mason, an American asset management firm, where he orchestrated a 15-year streak, beating the S&P 500.
At a time when pundits are predicting the price of virtual currencies to fall to ground zero, Miller sees the market quite differently and has stated that the significant corrections are a good sign for the crypto ecosystem. In his words:
“What I observed with bitcoin is that it’s following a very time-honored path of disruptive innovation going all the way back to the printing press, railroad, electricity, radio in the 1920s, biotech, the internet.”
It’s not just investors looking to score big on the rising asset class, but bitcoin and other major cryptocurrencies are also proving their worth amidst economic uncertainty. The increasing popularity in countries like Venezuela, Nigeria, and Greece all point to an emerging political tool.
For the people of Athens, their love for cryptocurrency is an unconditional one. Inspired by the capital controls imposed on the local banking system since 2015, bitcoin has given the people of Greece a new lifeline.
Dimitris Tsapakidis, an Athens resident with a background in computer science and mathematics, is one of the leaders of the Greek crypto community. He’s been into cryptocurrencies for quite a long time and has gained enough experience in the crypto trade to understand the technology’s future. He said:
“I got involved in cryptocurrencies about 20 years ago when we had some early cryptocurrencies, but were centralized and they all failed. The innovation of bitcoin and other cryptocurrencies is that they are decentralized. That is what makes them survive.”
Tsapakidis has taken it upon himself to enlighten the population about cryptocurrencies. Further, Bitcoin is accepted as a means of payment by over 70 businesses nationwide.
Running bank errands in Greece
Confidence in bitcoin approaching infinity
— Andreas M. Antonopoulos (@aantonop) December 4, 2017
“There was an explosion in interest for bitcoin in Greece in the middle of 2015, when we had capital controls in Greece and when the banks closed. A lot of people were interested because they couldn’t use the money in the banks,” Tsapakidis said, adding that:
“A few people also had to make payments abroad and the only way to make payments abroad at the time was with bitcoin and cryptocurrencies.”
The exponential rise of bitcoin in 2017 also triggered a pent-up interest of Greeks in digital currencies. Despite warnings from government authorities, the citizens are still determined to hold on to their crypto portfolios.
While their loyalty to bitcoin and other cryptocurrencies remains unshakable, these Greeks are quite uncertain what the future holds for blockchain-based virtual money regarding regulation and government interference.
“It’s a little early to guess what would happen. Greece will follow what happens in Europe in terms of law. So a lot depends on how the EU governments will decide to treat cryptocurrencies.”