It is quite obvious now that cryptocurrencies are not a bubble. The Bitcoin started almost ten years ago and no bubble lasts for ten years. It is certain that cryptocurrencies offer a legitimate service to their users and the activity differentiates cryptocurrencies from Ponzi schemes, for example. Cryptocurrencies are a big wave that’s already begun. The blockchain technology that was seen for the first time in the Bitcoin protocol is a revolutionary technology that is at the core of the entire crypto community today. Before Bitcoin, there have been multiple efforts of creating such a digital currency, but the key element was ensuring against double spending. With this new technology, users were prevented from copying their assets and spending them more than once. Since the blockchain relies on the mutual consensus of the users within the block there is legitimacy and security from fraud or theft.
Governments worldwide are not accepting cryptocurrencies since there is no way of controlling the market like you can with fiat currencies. Trade goes without state oversight and traditional governments lose their power when it comes to the monetary flow. If governments accept Bitcoin and other cryptocurrencies, the demand would rise and the price will go up. This is because adoption rates would go through the roof once the general population begins to recognize cryptocurrencies as a valuable option for value transfers. That is why cryptocurrencies are in a grey area in the bigger part of the Earth. Still, things change. Russia announced that they would accept Bitcoin in some way in order to determine whether there was any financial arbitrage. Some speculate that it is about the game of power between them and the USA. Japan recognized cryptos as an asset and not a currency which is also a small but important step. The fact that governments don’t adopt cryptocurrencies doesn’t mean they are not legitimate.