Bitcoin Touches Below $8,000 As Bubble Shows Signs Of Bursting
Bitcoin touches below $8,000 as bubble shows signs of bursting Mugs with the bitcoin logo are displayed for sale at La Maison du Bitcoin in Paris. (Geoffroy Van der Hasselt / AFP/Getty Images) Bitcoin whipsawed investors Friday, falling below $8,000 for the first time since November before recovering most of the day's losses, as a miserable 2018 continued for cryptocurrencies. Investors are confronting a mounting list of concerns about the future of the industry. Since reaching a record high of $19,511 on Dec. 18 shortly after the introduction of regulated futures contracts in the U.S., bitcoin's value has fallen by more than half amid waves of negative news. Setbacks included escalating regulatory threats from authorities around the world including India, South Korea, China and the United States; a record $500-million heist at Japanese exchange Coincheck Inc.; fears of price manipulation; and Facebook's ban on cryptocurrency ads. Japanese authorities raided Coincheck's offices Friday morning, a week after the robbery, hauling out documents and computers as evidence. The inspection was conducted to ensure security for users, Finance Minister Taro Aso said. "Bitcoin is in trouble," Lukman Otunuga, a research analyst at foreign exchange broker Forextime, wrote in a note Friday. "Price action suggests that bears are clearly in control, with further losses on the cards as jitters over regulation erode investor appetite further." The largest digital currency dropped as much as 16% to $7,643 before rebounding. Bitcoin was down 21% on the week. Rival coins ripple, ether and litecoin tumbled at least 28% as losses continued to spread across cryptocurrencies. Nouriel Roubini of Roubini Macro Associates said that bitcoin is the "mother of all bubbles," and that the bubble is now Continue reading >>
The Bitcoin Bubble Will Likely Burst, And Heres Why
It is hard to see bitcoins price surge as anything other than a bubble that will ultimately collapse. Bitcoins ostensible social function as an anonymous, nongovernmental means of payment carries big risks of its demise. And while blockchain, the platform that records bitcoin transactions, may well have staying power, there is no reason to believe it needs to rely on bitcoin for its success. Bitcoin is billed as a virtual currency that is independent of government or any other centralized authority. Its strengths are that it enables anonymous transactions and safety from taxation and confiscation by the state. Blockchain is also supposedly robust to transaction failures that can hit a centralized clearinghouse. As has been widely reported during the recent surge in bitcoin prices, new bitcoins come into circulation in return for investments of computer time (termed bitcoin mining) linked to updating the decentralized blockchain ledgers that update the ownership of bitcoins. The bitcoin basic algorithm is designed to limit the new virtual coins that come into circulation through mining, thereby ensuring the scarcity of bitcoin that ostensibly gives it its value. There are now 16.8 million bitcoins in circulation . With a current price of around $14,000 per bitcoin, they are worth about $240 billion, up from $16 billion at the start of 2017. Get Truth and Consequences in your inbox: Michael A. Cohen takes on the absurdities and hypocrisies of the current political moment. Read: Financial red lights are flashing again Bitcoins promoters claim that bitcoin will outshine the dollar because it offers anonymity as well as safety from reckless monetary policies (since the supply of bitcoins is determined by an algorithm rather than a politicized central bank that may choose to Continue reading >>
If The Bitcoin Bubble Bursts, Will Cryptocurrency Have A Place In The World?
If the Bitcoin Bubble Bursts, Will Cryptocurrency Have a Place in the World? After skyrocketing in value by almost 2,000 percent in 2017, this week bitcoin suffered its worst two-day crash since 2015 , only to bounce back to over $12,000—with speculation that it could climb over $100,000 this year. But does it matter? The latest price move shows bitcoin is still a speculative investment with an enormous amount of volatility. The fact that bitcoin isn’t actually being used much more than a year ago just goes to show it isn’t even really a cryptocurrency—it’s just a vehicle for hype. And not just bitcoin; ethereum, litecoin or whatever controversial and unimpressive initial coin offering (ICO) people are putting their money into. Even the bitcoin bulls have been calling it a bubble, and yet still buying—behavior that is eerily reminiscent of the dotcom bubble of the 90s. Like the dotcom bubble, bitcoin will, at some point, suffer a huge correction. And once the bubble bursts, bitcoin will no longer have a real place in the world. Bitcoin’s wild fluctuation is a clear embodiment of the justifiable hubris surrounding the technology behind it: the blockchain. And while bitcoin will undoubtedly be a joke at Davos this year, blockchain technology and its abilities will be a real focus of serious conversation, and for good reason. In Pictures: The 50 Most Powerful Military Forces in the World An Israeli holds a visual representation of the digital cryptocurrency bitcoin, at the 'Bitcoin Change' shop in Tel Aviv on January 17. JACK GUEZ/AFP/Getty Images Instead of focusing on bitcoin, we need to focus on third-generation protocols and the separation of tokens and coins to find true legitimacy for this technology—negating some of the issues you would otherwise se Continue reading >>
Vivek Wadhwa: The Bitcoin Bubble Is Going To Burst. Let's Promote Viable Digital Currencies Instead.
By Vivek Wadhwa, Distinguished Fellow, Carnegie Mellon University at Silicon Valley In the 17th century, Dutch speculators drove the price of imported tulip bulbs up to insane levels . Not wanting to miss out on the upside, ordinary people rushed in to the market. Many put their homes up as collateral in the hope of building wealth. When prices crashed, many speculators lost everything. A similar frenzy accompanied the dot-com boom of the late 90s. Silicon Valley venture capitalists and New York City bankers proclaimed it the foundation of a new economy and promised riches to anyone with a long-term investment outlook. To justify the ridiculous valuations of Internet companies with no revenue, they fostered widespread anxiety. But just like the tulip investors, low-level investors lost precious savings when dot-com companies went belly-up. Many of the people who benefited, meanwhile, were the already-rich: Wall Street veterans and CEOs and venture capitalists with the financial cushion to absorb a lot of loss en route to their one big score. Most of them also raked in huge bonuses and fees along the way. Unfortunately, and as I have written previously , a similar bubble seems to be building with Bitcoin. I am not saying that the price of Bitcoin wont rise; this bubble may grow a lot further before it bursts. But inevitably it will burst, because Bitcoin died as a digital currency about two years ago, when its price started rising to astronomical proportions. A currency needs to have stability so that you dont suffer remorse for spending it or live in fear that it will lose its value. Bitcoin no longer has this stability. Just like the tulip investors, low-level investors lost precious savings when dot-com companies went belly-up. Since the day in 2010 when 10,000 Bitco Continue reading >>
What Could Burst The Suspected 'bitcoin Bubble'? | Economic Bubbles - Quora
What could burst the suspected "Bitcoin bubble"? WePower - blockchain based green energy trading network. WePower token is backed by green energy. Token grows with platform expansion. Backed by biggest funds. Originally Answered: If Bitcoin is a bubble, what will make it burst? This is a rather interesting question and I don't think any of the other answers really go deep enough. Let's start by talking about what a bubble actually is; from wikipedia: "An economic bubble (sometimes referred to as a speculative bubble, a market bubble, a price bubble, a financial bubble, a speculative mania or a balloon) is "trade in high volumes at prices that are considerably at variance with intrinsic values". It could also be described as a situation in which asset prices appear to be based on implausible or inconsistent views about the future." The chart above shows the NASDAQ Composite index, try finding the dot-com bubble on the chart (hint: 2000). It's just now, about 14 years after the dot-com bubble burst, getting close to exceeding its all time high. To make it easier to see, I will now show the chart with the starting point in March of 2000, very close to the highest point (I'll get to Bitcoin in a minute). Now, let's consider the dot-com bubble and see if Bitcoin meets the characteristics. In addition, it is very valuable to consider the dot-com bubble when we talk about what could cause a Bitcoin bubble to crash*. In order to qualify as a bubble you need: Extreme valuations that are beyond what the asset can realistically return. Unrealistic expectations for the future...that is used to justify the extreme valuations. There is often a story of sorts used to explain why things are different this time (or whatever. Interesting side reading relating to this, Barry Ritholtz: Ev Continue reading >>
Has The Bitcoin Bubble Burst? Is This The End Of Cryptocurrencies? | City & Business | Finance | Express.co.uk
Other cryptocurrencies including Ripple and Ethereum also fell sharply over fears of a regulatory crackdown from South Korea. So has the bitcoin bubble burst? Is this the end of cryptocurrencies? Cryptocurrencies saw $200bn wiped off their market capitalisation in just one day as the total market capitalisation plummeted from $653.8bn on Monday to $450.5bn on Tuesday . All three major cryptocurrencies - bitcoin, Ripple and Ethereum - were hit by the fallout with XRP even crashing below $1 to $0.89 (0.64) on Wednesday after a January record high of $3.81 (2.75). Bitcoin price could PLUMMET down to $1000 in NEXT year But cryptocurrencies have stabilised over the last 48 hours with bitcoin valued at $11,875, Ethereum at $1,080 and Ripple at $1.68 at 1.47pm, according to CoinMarketCap. Dennis de Jong, managing director of global trading site UFX, said its too early to judge if the boom is over, particularly for bitcoin. He told Express.co.uk: Bitcoin is the absolute embodiment of speculative investment, and its trading lifecycle is taking the crypto-coaster ride. Clearly, though, this inherent volatility goes with the territory of embryonic companies and accompanying tech. Compare crypto currencies (Ripple, Bitcoin, Ethereum, LiteCoin) on value, market cap and supply for the past year LiteCoin is going down with the market dip Bitcoin is the absolute embodiment of speculative investment, and its trading lifecycle is taking the crypto-coaster ride. Fledgling cryptocurrencies simply cannot by judged by the lights of sterling and the dollar. For now, this is another world where the jury remains out on their real-word utility and genuine use cases. Despite Mr de Jongs positive outlook, some market investors are bracing themselves for further turmoil after Luxembourgs Finance M Continue reading >>
Bitcoin Bubble Is Bursting And Has A Long Way To Fall, Economists Warn
Bitcoin bubble is bursting and has a long way to fall, economists warn Despite losing 40% in a matter of weeks the cryptocurrency still has further to drop according to experts at Capital Economics Last modified on Thu 18 Jan 2018 18.28EST A Bitcoin Change shop in the Israeli city of Tel Aviv.Photograph: Jack Guez/AFP/Getty Images Bitcoin has all the hallmarks of a classic speculative bubble and even after almost halving in value in a matter of weeks it still has further to fall, according to a leading team of economists. As regulators in South Korea again signalled on Thursday that they were considering a ban on cryptocurrency exchanges, Capital Economics also dismissed claims that bitcoin and its imitators could replace established currencies as rubbish. Bitcoin, which rose to more than $19,000 in December, recovered by 18% on Thursday after suffering heavy losses in the preceding two days. Its value was sitting at $11,560 on the Luxembourg-based Bitstamp exchange shortly after 2am GMT. Other cryptocurrencies include Ethereum and Ripple. What is bitcoin and is it a bad investment? Bitcoin is the first, and the biggest, cryptocurrency a decentralised tradeable digital asset. Whether it is a bad investment is the big question. Bitcoin can only be used as a medium of exchange and in practice has been far more important for the dark economy than it has for most legitimate uses. The lack of any central authority makes bitcoin remarkably resilient to censorship, corruption or regulation. That means it has attracted a range of backers, from libertarian monetarists who enjoy the idea of a currency with no inflation and no central bank, to drug dealers who like the fact that it is hard (but not impossible) to trace a bitcoin transaction back to a physical person. The currency Continue reading >>
Bitcoin Bubble 'probably Just About To Burst,' Says Allianz Global Investors
Bitcoin Bubble 'Probably Just About to Burst,' Says Allianz Global Investors By Daniel Liberto | March 15, 2018 6:28 AM EDT Bitcoin prices are in a bubble that appearsdestined to burst at any point in the near future, Allianz Global Investors has warned. In an online post , reported on by CNBC , Stefan Hofrichter, head of global economics and strategy at the asset manager , said the hype surrounding the worlds biggest cryptocurrency might not vanish for some time yet, and may even help the digital coin to stage a recovery after posting sharp losses since the beginning of the year. However, Hofrichter is convinced that bitcoin will eventually lose its allure once investors recognize its many potentially fatal flaws. (See also: Bitcoin Price Spirals Toward $8,000 After Google Bans Cryptocurrency Ads .) "It appears to us that bitcoin mania is a textbook-like bubble and one that is probably just about to burst," hesaid. "As a currency and asset class, bitcoin has potentially fatal flaws which is why we believe it's a matter of when, not if, the bitcoin bubble will pop." Hofrichter came to this bearish conclusion after establishing that bitcoin ticks all of the boxes that Allianz Global considers to be essential criteria of any asset bubble.Warning signs include a fivefold surge in trading volumes over the last five years, a lack of financial regulation and the potential for swindles,the post added. Hofrichter also disputed claims from some bitcoin enthusiasts that the digital coin is the new gold. Bitcoin, he said, offers no intrinsic value because it does not have a claim to the assets of a government or company and doesnt generate any income. Hofrichter similarly ruled out suggestions that bitcoin functions as a viable currency, due to high transaction costs, sharp price Continue reading >>
Bitcoin Bubble 'just About To Burst,' Major Money Manager Says
Bitcoin bubble 'just about to burst,' major money manager says "It appears to us that bitcoin mania is a textbook-like bubble and one that is probably just about to burst," says Stefan Hofrichter, head of global economics and strategy at Allianz Global Investors. The cryptocurrency "ticks all of the boxes that we consider to be essential criteria of any asset bubble," including a fivefold surge in trading volumes over the last five years, lack of financial regulation and the launch of related financial instruments such as bitcoin futures, Hofrichter says. However, like many business leaders and analysts from traditional financial institutions, Allianz's Hofrichter says the blockchain technology behind bitcoin "clearly has potential merits," such as lower costs on verifying transactions. Published 11:51 AM ET Wed, 14 March 2018 Bitcoin prices are in a bubble that will burst in the near future because the cryptocurrency has many inherent flaws, Allianz Global Investors said in a report. "It appears to us that bitcoin mania is a textbook-like bubble and one that is probably just about to burst," the asset manager's head of global economics and strategy, Stefan Hofrichter, said in an online post distributed Friday. "As a currency and asset class, bitcoin has potentially fatal flaws which is why we believe it's a matter of when, not if, the bitcoin bubble will pop." Bitcoin has fallen sharply since leaping 2,000 percent in the 12 months through December to a record high above $19,000. The cryptocurrency was trading near $8,700 on Wednesday, according to CoinDesk's bitcoin price index. Allianz has 498 billion euros ($615 billion) in assets under management, according to its website. Compared with other bubbles, bitcoin is almost off the charts The cryptocurrency "ticks all o Continue reading >>
Here Are The Signs The Bitcoin Bubble Is About To Burst
Here Are the Signs the Bitcoin Bubble Is About to Burst Bitcoin whipsawed investors, falling below $8,000 for the first time since November before recovering most of todays losses, as a miserable 2018 continued for cryptocurrencies, with investors confronting a mounting list of concerns about the future of the industry. Since reaching a record high of $19,511 on Dec. 18 shortly after the introduction of regulated futures contracts in the U.S., Bitcoin has wiped out more than half its value amid waves of negative news. Setbacks included escalating regulatory threats from authorities around the world including India, South Korea, China and the U.S., a record $500 million heist at Japanese exchange Coincheck Inc., fears of price manipulation and Facebooks ban on cryptocurrency ads. Japanese authorities raided Coinchecks offices Friday morning, a week after the robbery, hauling out documents and computers as evidence. The inspection was conducted to ensure security for users, Finance Minister Taro Aso said. Bitcoin is in trouble, Lukman Otunuga, a research analyst at foreign exchange broker Forextime Ltd, wrote in a note Friday. Price action suggests that bears are clearly in control, with further losses on the cards as jitters over regulation erode investor appetite further. The largest digital currency dropped as much as 16 percent to $7,643, before trading at $8,897 at 11:14 a.m. in New York, according to consolidated Bloomberg pricing. Bitcoin is down 21 percent on the week. Rival coins Ripple, Ether and Litecoin tumbled at least 28 percent as losses continued to spread across cryptocurrencies. Nouriel Roubini of Roubini Macro Associates said Bitcoin is the mother of all bubbles, and its bubble is now bursting, speaking in an interview on Bloomberg Television. He said Continue reading >>
Why The Bitcoin Bubble Is Bursting, But Cryptocurrency's Future Is Still Bright
Why the Bitcoin Bubble is Bursting, but Cryptocurrency's Future is Still Bright Bitcoin and other cryptocurrencies have lost billions of dollars in value this week, but Blockchain is still leading the way to tomorrow. Eric Mack writes about what's coming next in science, technology, and other areas of innovation. He's reported from around the world for NPR, CBS News, Wired, AOL, and many others since the turn of the century. He's also a speaker, a radio producer, a podcaster, an author, a husband, a father, and a charter school co-founder. He feels physically weak when he's away from the Rocky Mountains. It sometimes seems it's hard to hold two thoughts to be true at once when it comes to all the hype and hate around Bitcoin , Blockchain and cryptocurrency : Either Bitcoin is a bubble or it's the beautiful unicorn that we'll all ride to a future filled with rainbows. When Bitcoin first crossed $10,000 a few months back, it seemed clear to me that it was past time to put on the brakes. I put out the warning that it probably wasn't best to start buying in to Bitcoin when its price was up 1,000 percent in less than a year. Some folks may have bought in at $10,000 and cashed out at the all-time high of over $19,000 in December. If you timed it perfectly, good for you. Plenty of others are still holding that purchase of holiday season Bitcoin and no doubt feeling anxiety watching the price slip below $9,000 for the first time since November . The current carnage is even worse in the so-called alt-coin market. Had you bought a thousand dollars worth of China-based crypto token Tron at its peak, it would only be worth around $200 today. But keep in mind that at the height of the crypto frenzy in December, the going prices for alt-coins were doubling or tripling on a d Continue reading >>
Bitcoin's Bubble Is Bursting. How Low Will Prices Fall?
Just before Christmas, 2017, Bitcoin seemed unstoppable . Its value was rising exponentially as more and more investors piled in to the digital currency, hoping to profit from its sudden popularity. Other cryptocurrencies benefited too, as investors diversified their cryptocurrency holdings and arbitraged differences. Demand was so heavy that cryptocurrency exchanges crashed . Those who had held (or HODLed) cryptocurrencies for some time received the biggest Christmas present of their lives . A coin representing Bitcoin cryptocurrency is reflected on a [+] [-] polished surface as it sits in a pool of translucent liquid in this arranged photograph in London, U.K., on Thursday, Feb. 8, 2018. Cryptocurrencies tracked by Coinmarketcap.com have lost more than $500 billion of market value since early January as governments clamped down, credit-card issuers halted purchases and investors grew increasingly concerned that last years meteoric rise in digital assets was unjustified. Photographer: Luke MacGregor/Bloomberg Professional investors and amateur traders alike predicted that Bitcoins price would increase even more in 2018. Bitcoin will never crash, said one Reddit user , because then everyone would buy it when its much cheaper. Like everyone buys the dips in a highly volatile high-yield market. Others looked forward to universal adoption and a price tag in the millions. They might have trouble cashing in their windfall now, but that didnt matter. Once everyone was using cryptocurrencies, fiat currency would be irrelevant and they would be the new super-rich. Some even started setting up a cryptocurrency Utopia in Puerto Rico , principally it seems to avoid the very large tax bills they would have to pay if they ever managed to convert their cryptocurrencies to dollars. H Continue reading >>
Did Bitcoin Just Burst? How It Compares To History's Big Bubbles
Bloomberg the Company & Its Products Bloomberg Anywhere Remote LoginBloomberg Anywhere Login Bloomberg Terminal Demo Request Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Did Bitcoin Just Burst? How It Compares to History's Big Bubbles Bitcoins recent wobbles have given fresh urgency to a question thats gripped market observers for much of the past year: Will the cryptocurrency go down as one of historys most infamous bubbles, alongside tulipmania and the dot-com craze? The magnitude of Bitcoins boom (before it lost as much as 50 percent from its Dec. 18 high) suggests investors have reason to be worried. As the chart shows, the cryptocurrencys nearly 60-fold increase during the past three years was truly extraordinary. It dwarfed the Nasdaq Composite Indexs gain during the headiest days of the 1990s. Going further back, it comfortably outstripped the a of the 1630s, though that last comparison should be taken with a grain of salt given the scarcity of recorded tulip values. (The chart includes prices for just one varietal; consistent post-peak figures were unavailable.) Bulls say that Bitcoins boom is far from over, and that theres more to analyzing a market than just measuring price gains. While the recent tumble has alarmed some investors, the cryptocurrency has bounced back from several previous swoons exceeding 50 percent. If Bitcoin did become a widely-accepted form of digital gold, as predicted by Cameron Winklevoss of Faceb Continue reading >>
Have Regulatory Fears Finally Burst The Bitcoin Bubble?
Have regulatory fears finally burst the bitcoin bubble? Spooked investors are selling their cryptocurrency as value tumbles. At the time of writing (17 January), bitcoins value had plunged to $10,811,a drop of around 46pc (compared to a high of $19,500 in December). Fears of a regulatory crackdown have sent cryptocurrencies tumbling as investors rush to sell their coin. According to CoinMarketCap ,cryptocurrency trading has seen bitcoin fall 10.45pc overnight, Ethereum fall 11.6pc, Ripple fall 16.8pc, bitcoin cash fall 10.5pc and Cardano fall 13.6pc. Out of the myriad of cryptocurrencies out there, some of the biggest falls include NEO by 20pc, and Qtum by 19pc. Reports of regulatory crackdowns are nothing new. So, why are investors suddenly getting cold feet? The plunge in cryptocurrency value was driven by reports that South Korea and China could ban trading of cryptocurrencies such as bitcoin, leading to fears of a wider regulatory crackdown worldwide.China recently instigated its crackdown, beginning with the ceasing of all ICOs. This followed hot on the heels of similar moves by financial authorities in Singapore and South Korea. And what could be the financial impact if the cryptocurrency goose is cooked? According to Coinbase, so far, more than $50bn worth of digital currency has been exchanged worldwide by 10m people in 32 countries. It is too early to say if the bitcoin bubble has burst, and if it and other cryptocurrencies could yet rally, but the chances are that the dizzy heights of December no longer look so gilded in the cold light of the dawn of 2018. Cryptocurrencies represent a marvel of our digital age, but could distract from the greater gains to be reaped from a myriad of more practical uses of the blockchain technology on which they are based. Sign Continue reading >>
The Bitcoin Bubble May Not Have Burst, But It Will
Home > Stock Picks > Hot Stocks > The Bitcoin Bubble May Not Have Burst, But It Will The Bitcoin Bubble May Not Have Burst, But It Will Cryptocurrency crashed again, as China prepared to crack down on trading Prices for Bitcoin (BTC) and other cryptocurrencies were crashing Jan. 16 after China indicated it would block access to platforms that allow centralized trading, both inside and outside the country. Bitcoin prices quoted at Coinmarketcap fell over by about 14%, or $1,500 , in 24 hours and other coins were down 20% or more in sympathy. Bitcoin was trading at about $12,000 as this was written. Adding to the bearishness were reports that South Korea, another Bitcoin trading hub, might ban trading . Most of the Bitcoin bubble has been driven by people using Chinese Yuan, the South Korean Won and the Japanese Yen. The market was also hit by an academic study, published in the Journal of Monetary Economics ,showing that a Bitcoin price spike in 2013, from $150 to $1,000 per coin, was likely set off by one or two traders doing fake trades . Chinas crackdown on centralized trading seems an effort to fight drug dealers, who have centralized money laundering around Bitcoin mixers, software tools meant to obscure transaction histories, and gambling sites, according to the Center on Sanctions and Illicit Finance . The crackdown comes as Russia, North Korea and Venezuela all step up their use of cryptocurrency to get around sanctions. Russia has talked about trading cryptocurrency on official exchanges, Venezuela about launching a cryptocurrency backed by its oil, and North Korea has been reportedly stealing cryptocurrency through state-paid hackers. In the past, traders shrugged off such concerns, with technical analysts calling for rallies , and there remain bank analysts w Continue reading >>