Is Bitcoin A Bubble Thats About To Burst? Economists Say Yes, Crypto Experts Say No
Is Bitcoin a bubble thats about to burst? Economists say yes, crypto experts say no By Jessica Vomiero National Online Journalist Global News WATCH: Bitcoin tumbled 18 per cent on Tuesday to a four-week trough close to US$11,000, after reports that a ban on trading of cryptocurrencies in South Korea was still an option drove fears of a wider regulatory crackdown. Economists have long said that volatility of cryptocurrencies checks all the boxes of a market bubble, but in recent weeks, theres been debate about when that bubble could burst. Hundreds of billions of dollars were shaved off the total market cap of cryptocurrencies in the 24 hours leading to Friday afternoon, according to data from CoinMarketCap. One of the economists who predicted the 2008 global financial crisis, New York University professor Nouriel Roubini , told Bloomberg TV on Friday morning that Bitcoin was the mother of all bubbles, as its value fell 15 per cent to below US$8,000, continuing its spiral downwards from over $10,000 at the beginning of the week and from almost $20,000 at the end of 2017. Other major cryptocurrencies are also on the decline. On Friday alone, Bitcoin fell over 17 per cent, Ethereum fell more than 32 per cent, Ripple was down 38 per cent, and Bitcoin Cash was down over 27 per cent,according to CoinMarketCap. The question on everyones minds is: If cryptocurrencies are a bubble, is it bursting? According to experts, the real value of Bitcoin is difficult to determine because of two reasons: The currency is incredibly volatile, and trading practices may manipulate behaviour in unregulated exchanges. Joshua Gans, theJeffrey S. Skoll Chair of Technical Innovation and Entrepreneurship at the University of Toronto, argues that the Bitcoin bubble isnt going to burst because it alr Continue reading >>
Cryptocurrency Price Crash Will Burst Bitcoin, Ethereum, Ripple Bubble | Metro News
There may be trouble ahead for crypto investors (Picture: Getty/Metro.co.uk) People who invested in Bitcoin and other cryptocurrencies could soon lose all their money. Thats the warning from the European Union , which said the surging value of virtual currencies is a bubble which could burst at any time. Bitcoin, the most famous cryptocurrency, soared by more than 1,000% in 2017 but has already lost about half of its value this year as governments around the world threaten a clampdown on the unregulated market. Its dramatic price collapse has been described as a cryptopocalypse and a bloodbath . Yesterday, the European Unions banking, securities and insurance watchdog said the information given to people who buy digital dosh is in most cases incomplete, difficult to understand, does not properly disclose the risks and may therefore be misleading. Virtual currencies such as Bitcoin, are subject to extreme price volatility and have shown clear signs of a pricing bubble and consumers buying VCs should be aware that there is a high risk that they will lose a large amount, or even all, of the money invested, the warning continued. The price of Bitcoin has been on a rollercoaster ride over the past three months (Chart: Coindesk) A probe was requested by European Commission Vice-President Valdis Dombrovskis, who said last month that the bloc must prevent cryptocurrencies from becoming a token for unlawful behaviour. There will be a meeting of key authorities and the private sector very shortly to assess the longer-term situation for cryptocurrencies beyond current market swings, he said. Last week Germany and France asked the Group of 20 Economies (G20) to discuss possible regulation for cryptocurrencies at its next meeting. Markus Ferber, vice chair of the European Parliamen 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 >>
Are Cryptocurrencies In A Bubble, Will It Burst, And What Will Be Economically Affected?
Are cryptocurrencies in a bubble, will it burst, and what will be economically affected? I wrote a question on Quora asking why is Bitcoin and blockchain appearing all over my Quora topics? I got the most awesome reply: because you keep following Bitcoin questions! I didnt get a reply to my follow up comment but why say Politics? To answer the question is crypto a bubble, we need to start by thinking about bubbles. And not just bubbles in Quora questions. Anyone who asks is crypto a bubble is asking because it has gone up a lot. Zero to $6,000 is insane. Now we are all clever enough to know that it is not the going up that defines a bubble, its the coming down. Well heres my first point. Theres a special type of bubble where something goes up, then it goes down, and then ten years later it goes up again. Its a technology bubble. Apple, Microsoft and Amazon are all worth way more than they were in 1999. All of these stocks were in a bubble in 1999, and if you invested your life savings in 1999, then two years later your life savings would have been worth squat. Apple, Microsoft and Amazon all came in and changed the world. But they got hyped, money poured over them like gasoline and reality took fifteen years to catch up. One thing that is mad is that maybe the new tech that these guys represented crashed the wider market. Think about that. Oil companies and banks and consumer goods shops, maybe all their stock prices dropped in 2000 becausebecause people got too hyped on buying their office supplies through their browser! Theres actually a lot of academic literature on this perversity. Greenwood and Jovanovic (1999) developed a model where a new tech drove down the stock market until the new tech became productive. Hobijn and Jovanovic (2001) argued that this might be 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 >>
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 >>