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Crypto-curriencies: Boom or Bust?

Recently the market of cryptocurrencies reached record values with the predominant currency (bitcoin) being valued at over 5.000$. These currencies were intially created as a way to circumvent the state-banking structure and allow individuals to effectively carry out transactions by themselves.

Unfortunately this government-free monetary system became infamously linked with the criminal-trafficking industry. By using currencies outside normal government avenues of investigation, they were able to group together gigantic black markets; selling everything from forgeries, to drugs, and even people to the highest bidder.

However this is not the currency’s only use by far! Today bitcoin and other cryptocurrencies are being accepted in stores all over the planet, especially at small business whom are less capable of electronic transactions otherwise. By circumventing the banks or credit card companies, these small-business are able to collect money from internet transactions without the need to pay any fees or fines.

However all good things must come to an end. Within the past few weeks the cryptocurrency market crashed (not for the first time, much less for the last time) dropping the value of a single bitcoin below 2.000$. Many speculate that this crash be due to the simple economic principle of supply and demand (as the demand of bitcoins went up, so did its price; when price outweighs the demand of the currency the value collapses). This apocalyptic drop in price only served to scare those who were already dubious about investing in cryptocurrencies; and enrich a few smart vultures.

Another, less proven, theory around the sudden collapse of the value of cryptocurrencies can be found in the deepes annals of the web. Here some theorize that someone(/thing) tried to devalue the currency on purpose for their own nefarious needs. This argument states that either the government/ the banks/ lizard people/ aliens/ or bitcoin investors themselves; designed the crash specifically to profit from it. This idea is based on a wave of bad press coverage given to the cryptocurrency market just before the crash, one intended to break confidence with these currencies. The profit here lying in the reinvestment of cryptocurriencies when they’re low (just like with stocks wherein you buy low and sell high).

Currently the bitcoin is valued at roughly 3.100$ and is consistantly rising. Some theorize that the bitcoin could incite an economic revolution if given enough attention. Leaving behind the big banks and investment firms of today for a new form of communal funding based on personal transactions. However this situation is dependant on how the currencies evolve, if they can compete with current national-currencies, and whether we’ll actually be able to use them practically.

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