Is encryption in the bubble (again)?

The world of encryption is noisy. If you ask a real believer, they will say this is just a start. Ask skeptical, and they will divide that we are watching a bubble that enlarges in actual time. One can emerge any second.

I saw the excitement directly at an encryption event in Brooklyn last week. The tape was crowded. People were moving. It looked like a flashback Flash until 2020 and 2021, when the encryption fever acquired everyone from retail dealerships of twenty -year -old to grandparents. At that time, it was all about Bitcoin, cheerful Nfts like yacht club bored, and anything promising wild returns. It was a digital casino where everyone was hoping to hit him rich. fast.

But then the accident came. “Crypto Winter”, which features the wonderful fall of Crypto Exchandic FTX and the sticker Sam Bangan. Billions disappeared. Confidence collapsed. The organizers are surrounded.

now? The energy has returned. It is confusing.

At the BROKLYN event, hosted by Network (an emerging company trying to deliver various encryption systems, or “Blockchains”), optimism was clear. “There was no better time to be a developer,” said Li Decus, co -founder.

On paper, the return of Crypto seems to be not stopped. The total market value of the industry has swollen by more than 3 trillion dollars since the beginning of 2023. Companies like Robinhood, Coinbase and Microstrategy ride the wave. Circle Internet Group, the company behind one of the largest “Stablecoins”, became public in June, with a value of $ 6 billion. It rose to approximately $ 50 billion in only weeks.

Wait, what is Stablecoin?

Stablecoin is a type of cryptocurrency designed to expand a fixed value, and is usually linked to something like the US dollar. The idea is to give people the speed and elasticity of encryption without the wild price fluctuations for Bitcoin or Ethereum. In theory, you can use stablecoins instead of criticism to buy coffee or pay your rent. In fact, we are not there yet.

But the bet of the encryption companies is clear: one day, we will use all digital dollars instead of paper. This is what gold leads today. The question is: Are people ahead of themselves?

New Crypto Companies: Defi and Bitcoin Treasury Companies

Many current noise centers on Defi, short for decentralized financing. Think about it as an attempt to rebuild Wall Street without banks. Instead of agreeing to your loan or dealing with your trading, the code does so. No mediator, no gate guards. It looks revolutionary, but so far, it has mostly a stadium for speculators and technology obsessive.

Then there are bitcoin. These are the regular companies that download their public budgets with bitcoin instead of dollars, euros or gold. Microstrategy is the sticker, as he spends billions of dollars to buy Bitcoin and convert himself from a sleeping software company into a kind of encryption hedge box. The idea is that bitcoin will exceed inflation and coins in the long term.

Bubble or boom?

There is no clear answer. Amazing numbers. The noise is real. However, there is still a lot of uncertainty about whether the major Crypto promises will match reality. Even with a friend of encryption at the White House, the way to replace money or Wall Street is long.

So, is this a bubble? maybe. Maybe not. This depends on who you ask.