Sell! Sell! Sell! This Ai Tries To Predict When The Bitcoin Bubble Will Pop
Home > Emerging Tech > Sell! Sell! Sell! This AI tries to predict when Sell! Sell! Sell! This AI tries to predict when the bitcoin bubble will pop Major investment firms are preparing to offer Bitcoin futures Get today's popular DigitalTrends articles in your inbox: Is bitcoin the future of currency as we know it or the center of a massive pump-and-dump scheme that will eventually see its bubble burst? Whichever way you view it, the fact that everyones favorite cryptocurrency was worth 30 cents in 2010 and is valued at more than $10,000 today means theres a long way for it to fall and potentially take your savings down with it. Thank goodness, then, for artificial intelligence , and a new tool called Bitcoin Bubble Burst , which was recently presented at the Disrupt Berlin Hackathon . Using machine learning sentiment analysis, and then scraping online marketplaces and social media for news about bitcoins changing value, Bitcoin Bubble Burst could turn out to be a savior for anyone getting antsy about their cryptocurrency portfolio. It takes the form of a regular subscription newsletter that collates the information its found. If a certain threshold of warning signs is reached, its creators claim it will also allow you to know first so you can cash in your savings before theres a run on the virtual bank. The idea came from discussions we had inside the team about whether the bitcoin bubble will burst soon, or will the value keep rising, Saad El Hajjaji , one of the team members, told Digital Trends. Since its a topic that many people are interested in, we thought it would be good to try and predict the changes before they take place, so that you always stay in the loop. Hajjaji said that he is personally optimistic about the future of bitcoin in the long run, but acknow Continue reading >>
What's Next For Bitcoin?
Sizing up Bitcoin is a tall order. Even as the price of one bitcoin soared above $10,000, a debate raged over what, exactly, Bitcoin is: A digital store of value, a revolutionary payment platform, or the promise of a completely new, blockchain-based financial system. The truth is that Bitcoin is all of those things, but whether it'll succeed as all three or any of them remains to be seen. SEE ALSO: Ladies and gentlemen, one bitcoin is now worth $10,000 Bitcoin's price increased tenfold in 2017 and moved into the media mainstream. But for all the headlines and Bitcoin billionaires , the underlying technology mostly stood still. A significant (and highly controversial) upgrade of its software fell through . And the earlier, minor upgrade still isn't widely used yet . The most important problem these upgrades were supposed to fix bitcoin's biggest problemthat it's escalating popularity had exposed an underlying issue with Bitcoin's distributed database. The issue limited just how much Bitcoin could process at any one time, making the network congested and transactions expensive (not to mention power-hungry ). Put simply, while Bitcoin has exploded in value and popularity, the base technology has remained stagnant. And that casts a shadow on its future right when competition among cryptocurrencies is on fire. With this issue unresolved, Bitcoin lately hasn't evolved in the direction its founder (or founders we don't know his identity) Satoshi Nakamoto had originally envisioned for Bitcoin to become a peer-to-peer digital cash payments system. Sure, you can use Bitcoins for payments, but with transaction fees going through the roof and Bitcoin's price constantly rising, it's just not a very good way to pay for things online. No wonder big online retailers such as Amazon are Continue reading >>
How Big Can The Bitcoin Bubble Get?
Published Dec 29, 2017 at 8:00 am (Updated Dec 28, 2017 at 10:18 pm) New asset class: the value of bitcoin has fluctuated between $12,000 and $19,000 during the last two weeks (Photograph by Tomohiro Ohsumi/Bloomberg) Stan Stalnaker, founding director of Hub Culture The marketplace for cryptocurrencies has this year expanded from $20 billion to around $450 billion. And it could be heading for $1 trillion, according to Stan Stalnaker, who helped create the worlds first digital currency, the Bermudian-based Ven. He has shared his views on cryptocurrencies, highlighting the opportunities and the dangers. We see digital assets like Ven and bitcoin and everything else as a new asset class. They are not an equity and they are not a currency or a commodity. They are a digital asset, often a tokenised asset, that represents something else. It is that token that everyone is mad for right now, he said. As has been seen during the past two weeks, this new asset class is not for the faint-hearted. The value of bitcoin, the worlds best-known cryptocurrency, has swung from $19,000 to $12,000 and back to $14,000. The question is, is it a bubble? Yes. But how big is the bubble going to get and how much of it is fundamentally real, so that after the bubble bursts or a major decline in valuations, how much will be left over in this new industry? Mr Stalnaker is a founding director of Bermudian-headquartered Hub Culture, an online social network with 45,000 members around the world. The organisation created and manages Ven, a digital currency which has existed since 2007. A number of countries are starting national cryptocurrency exchanges, with India due to launch its next month, and China will be close behind. In the US you have many exchanges cleared and operating with regulatory over Continue reading >>
What Happened To The Price Of Bitcoin? The Truth Behind Big Bubbles Andcrashes
What happened to the price of Bitcoin? The truth behind big bubbles andcrashes What happened to the price of Bitcoin? The truth behind big bubbles andcrashes Deputy Editor: Business + Economy, The Conversation Senior Professor of Economic and Business History, University of Wollongong Republish our articles for free, online or in print, under Creative Commons license. Business Briefing: What happened to the price of Bitcoin? The truth behind big bubbles and crashes. The Conversation24.8 MB (download) When Katherine Hunts dad asked her whether or not he should invest in Bitcoin, alarm bells rang, first she thought hes a musician. Hunt is a lecturer in accounting at the Griffith Business School, and as someone who knows the five stages of a bubble and crash, she was worried when it seemed everyone was thinking they needed to get in on Bitcoin. The stock market is a manifestation of the psychology of everyone who is investing, so of course there is going to be these crazy stages, Hunt says. There is a boom, as momentum behind a new stock or asset speeds up and the media starts to cover it, fuelling its price rise. Then the euphoria sets in, the value of the asset skyrockets and people start to make a profit. But looming around the corner is the panic. Investors feel the last phase of a crash far more than they do the elation of the price rising, Hunt says. Panic breeds more panic and the price falls. Hunt is seeing this pattern play out with the stocks of the more well known gig economy businesses like Airbnb and Uber. These businesses now enjoy the privilege of being the only, or one of a few of their kind, in the marketplace. But Hunt says this cant last. In an open market thats not the case at all, theres always going to be competition and these companies will fall. It Continue reading >>
Why The Massive Fears Around Cryptocurrency Will Rise And What's Next For 2018
Why The Massive Fears Around Cryptocurrency Will Rise And What's Next for 2018 Opinions expressed by Forbes Contributors are their own. There is no doubt that cryptocurrency is a word that elicits a very strong response these days. On one hand, Team Crypto heralds the arena as the next big thing as they speak in blue sky terms about the future of this new form of currency that takes digital shape and is beyond restriction. In direct opposition is Team Tradition that warns of the perils of decentralization and fraud around pure digital currency. Indeed, there was nothing short of a frenzy around trading on the CBOE bitcoin futures a few days ago , while the day after reports detailed a large digital heist surrounding Ethereum. Doomsday sentiment around this new area of tech convergence with that of the financial spectrum is plentiful. Just why is there so much fear around the area of cryptocurrency, and what will 2018 mean for this pioneering area, particularly as we move to a general cashless society that is easily driven and adopted by the massive Millennial demographic? To answer this question, it's best to turn to those well-entrenched in the crypto area on a day-to-day basis. The following are real-time insights from a number of crypto executives as they see reasons behind the fears as well as key predictions for 2018 so that you can be prepared: KonstantinosKaragiannis,Chief Technology Officer, Security Consulting Practice, BT Americas on why there is so much fear around crypto: Theres fear on two sides: financial and technical. Financial is mostly that its a bubble. Every time Bitcoin pulls back in price, someone says its a bubble. Technical is that coins will be: lost, stolen/hacked, or just plain frauds (as is the case with some ICOs). His top three trends in t Continue reading >>
Novogratz Says Crypto Will Be Biggest Bubble Of Our Lifetimes
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. Novogratz Says Crypto Will Be Biggest Bubble of Our Lifetimes Bitcoin Ends Year at $10,000, Says Mike Novogratz One of the biggest bitcoin bulls on Wall Street says cryptocurrencies are in a massive bubble. Hes still starting a $500 million fund to invest in them. This is a bubble and there is a lot of froth. This is going to be the biggest bubble of our lifetimes, hedge fund manager Mike Novogratz said at a cryptocurrency conference Tuesday in New York. Novogratz, whos says he began investing in bitcoin when it was at $90, is starting the crypto fund because of the potential for the technology to eventually transform financial markets. Bitcoin topped a record $9,900 earlier Tuesday in Bloomberg composite pricing. Bubbles start around ideas that are often right, he said. I dont think many of these are currencies, even bitcoin, he said at the Coindesk-sponsored conference. Bitcoin will win battle for store of value. Galaxy Digital Assets Fund would be the biggest of its kind and signal a growing acceptance of cryptocurrencies as legitimate investments. For Novogratz, the fund marks a comeback to professional money management after humbling losses at Fortress Investment Group LLC and almost two years of self-imposed exile from Wall Street. Read more: Bitcoins Most-F Continue reading >>
Bitcoin Bubble Burst Uses Ai To Predict A Bitcoin Price Crash
Bitcoin Bubble Burst Uses AI to Predict a Bitcoin Price Crash Bitcoin Bubble Burst Uses AI to Predict a Bitcoin Price Crash JP Buntinx December 5, 2017 Crypto , News The Bitcoin price momentum is a very hot topic right now. Many people think this is only the beginning, whereas others feel the bubble willsoon pop. Whether or not a Bitcoin price crash is imminent remains up for debate. Thankfully, there is a platformwhich claims it will warn people well in advance. Bitcoin Bubble Burst is a pretty nifty tool based on AI. These days, every Bitcoin price tick is thoroughly scrutinized and analyzed. Speculators are on the lookout for eitheranother breakout or a major crash. Using technical analysiscan help with predictions, although not every chart is correct either. Moreover, most people wont even bother with TA,as it is not all that easy to learn and far from accurate if enough people dont follow the projected trend. This is whereanapplication called Bitcoin Bubble Burst comes into the picture. It is a pretty interesting mobile app which solely focuses on analyzing the current Bitcoin price momentum. The tool uses artificial intelligence to predict the future value of cryptocurrency, which is rather interesting. Additionally,it keeps tabs on social media and the news to determine the sentiment regarding Bitcoin and its value. As one would expect, this is not a foolproof solution by any means. Using artificial intelligence and deep learning algorithms is pretty interesting, butsuch predictionscan still be wrong in the end. Moreover, relying partially on social media and the news to gauge whether or not the Bitcoin price will rise or decline may not be the best idea either. Weve seen a lot of headlines claiming Bitcointobe in a bubble, but so far, the criticshave been prove Continue reading >>
Four Triggers Could Cause A Huge Cryptocurrency Crash
Four triggers could cause a huge cryptocurrency crash If cryptocurrencies are, in fact, in a bubble, then what could make it burst? Julian Hosp, the co-founder and president of TenX, explores some possible answers. TenX, which itself held one of the largest initial coin offerings ever, provides debit cards that people can use to spend their cryptocurrency holdings so Hosp has been working to determine the risks to the space. He has identified four factors that could potentially lead to a significant drop in cryptocurrency values. If it's true that the bigger they are, the harder they fall, then cryptocurrencies have been gearing up for a tremendous decline. But, then again, maybe this is just the start for the great crypto bull market. As of Monday, the entire cryptocurrency market stands at approximately $563 billion, according to industry site CoinMarketCap, which represents a more than 3,400 percent increase from the beginning of 2017. With some cryptocurrencies soaring several thousand percent, Google search results for the space coming in at all-time highs and lots of people hoping for overnight riches in nascent markets, it begs the question: Just how far can this growth be sustained and are we in a crypto currency bubble? I'm not going to argue whether or not the space is dangerously overinflated, but I am in the business of considering worst-case scenarios. My company, TenX, provides debit cards that people can use to spend their cryptocurrencies, so I want to always be prepared for whatever the future may bring. So here's the question I'm asking: If it is a bubble, then what could make it burst? Knowing that one person alone is hardly ever smart enough to weigh all the variables, I have set out over the past few weeks to talk to some of the brightest and most Continue reading >>
Investor Who Called Last Two Major Market Crashes Says Bitcoin Is A Bubble
Noted investor Jeremy Grantham, who called the last two major market bubbles, said bitcoin is a bubble that may crash soon. "This is a true, crazy mini-bubble of its own I expect," Grantham, co-founder of Boston-based investment management firm GMO, said in a Wednesday letter to clients. "Historical analogy suggests this junior bubble, by size, may well crash and burn even before the broad market peaks," he said. Grantham predicted the market downturns in 2007 and 2000, and now expects stocks will see their final leg higher in the next six to 24 months. Bitcoin shot up from less than $1,000 at the start of 2017 to a record high above $19,800 in mid-December. The world's largest futures exchange, CME , and its competitor, Cboe , both introduced bitcoin futures that month as well. Many saw the move as a step toward legitimizing bitcoin as an asset class, and paving the way for a bitcoin exchange-traded fund in the U.S. In the letter, Grantham also included a chart illustrating how large and how rapid the bitcoin price surge has been in the last two years compared with other historical bubbles. "As you can see, Bitcoin dwarfs even the legendary South Sea Bubble!" he said. "Having no clear fundamental value and largely unregulated markets, coupled with a storyline conducive to delusions of grandeur, makes this more than anything we can find in the history books the very essence of a bubble." Other well-known investors have said for months that bitcoin is in a bubble, and compared it to the tulip bulb mania or speculation in Beanie Babies. J.P. Morgan Chase CEO Jamie Dimon called the digital currency a "fraud." But none of the criticism has deterred bitcoin's surge so far, or prevented others from predicting further gains. And although bitcoin has struggled in the last two Continue reading >>
Bitcoin: Is It A Bubble Waiting To Burst Or A Good Investment?
Bitcoin: is it a bubble waiting to burst or a good investment? Disciples of the cryptocurrency plan to hold on for dear life but traditional finance is getting twitchy Bitcoin has risen 900% in value in 2017.Photograph: Dado Ruvic/Reuters Bitcoin: is it a bubble waiting to burst or a good investment? Disciples of the cryptocurrency plan to hold on for dear life but traditional finance is getting twitchy Last modified on Monday 11 December 2017 05.29EST Bitcoin is the fastest-growing asset in the world this year, but the virtual currency does not appear to have many users in Londons tech district. It has been more than a month since bitcoin was used to buy a flat white or craft beer sold at the Old Shoreditch Station, according to the hospitality manager at the east London bar. What is bitcoin and is it a bad investment? Bitcoin is the first, and the biggest, "cryptocurrency" a decentralised tradable digital asset. Whether it's 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's hard (but not impossible) to trace a bitcoin transaction back to a physical person. Louis Chauvin admits he cannot find the iPad that is used by staff for processing bitcoin payments, as he resumes serving customers queueing to pay with their contactless bank cards. Although the establishment sits in the capitals buzzing tech hub, and is advertised online as one Continue reading >>
What Happens If The Bitcoin Bubble Pops?
By Larry Light MoneyWatch December 12, 2017, 4:00 AM The enormous run-up in bitcoin's price this year has spurred talk that it's a bubble bound to burst. That sounds ominous. But take heart: If bitcoin's bubble pops, the pain likely will be restricted to those who bet on the cryptocurrency -- and not harm the wider market and economy very much. Compared to past investment manias that came to grief, such as the 1990s dot-com craze and the housing boom of the past decade, a bitcoin rout likely would be of small magnitude. Certainly, bitcoin's gains have been breathtaking enough to invite worry. Bitcoin, created as a faster and government-free means of exchange, has had such a sudden ascent that it's scary to many on Wall Street. Jamie Dimon, chairman of JPMorgan Chase ( JPM ), has labeled it a "fraud," and Bespoke Investment Group warned that the "herd mentality" that has pushed its price precipitously skyward would end in tears. This year, bitcoin's price has enjoyed a 1,600 percent increase, shooting past $17,000 on Monday. It far eclipses the Nasdaq Composite's 26 percent advance. The cyber-currency "is now officially an investor mania," wrote Joshua Brown, an adviser with Ritholtz Wealth Management in a blog post. "Like all manias, when it turns, people are going to be wiped out." Bitcoin is notoriously volatile , with double-digit drops common. In June, for instance, it fell 19 percent in one day. And many of the people piling into bitcoin appear to be speculators, not long-term investors who believe in its future. While the digital dough has found increasing acceptance among some retailers, with the likes of travel service Expedia accepting it, bitcoin and its smaller rivals like Ethereum have a long way to go. That's because a taint lingers about the stuff. Bitcoi Continue reading >>
Bitcoin Is The Most Obvious Bubble Of The Modern Era - The Atlantic
To call Bitcoin the biggest and most obvious bubble in modern history may be a disservice to its surreality. The price of bitcoin has doubled four times this year. In early January, one bitcoin was worth about $1,000. By May, it hit $2,000. In June, it breached $4,000. By Thanksgiving, it was $8,000. Two weeks later, it was $16,000. This astronomical trajectory might make sense for a new public company with accelerating profits. Bitcoin, however, has no profits. Its not even a company. It is a digital encrypted currency running on a decentralized network of computers around the world. Ordinary currencies, like the U.S. dollar, dont double in value by the month, unless theres a historic deflationary crisis, like the Panic of 1837. Instead, bitcoins behavior more resembles that of a collectible frenzy, like Beanie Babies in the late 1990s. But defining and identifying bubbles is harder than it seems (kind of like defining bitcoin ). The term technically refers to an asset whose price dramatically exceeds its intrinsic value. But who determines price and value, anyway? Those arent scientific concepts with formulas, like gravity or the length of a hypotenuse. They are the co-creation of buyers and sellers whose needs and attitudes are constantly changing. Sometimes, spotting a bubble is very easy. Imagine three public companies that make shoe leatherDerek Leather, Inc., Joe Leather, Inc., and Becca Leather, Inc.with the exact same revenue, expenses, talent pool, and customer demographic. Lets say the market caps for all three companies start the year at $1 billion and Derek Leather and Joe Leather dont appreciate; meanwhile, the public valuation of Becca Leather climbs to $2 billion, then doubles to $4 billion in a month, and then doubles again to $8 billion in the followi Continue reading >>
Bitcoin Bubble: 3 Signs The Cryptocurrency Craze May Pop | Money
Bitcoin prices hit $19,000 early Monday morning, as Bitcoin futures contracts began trading on the Chicago Mercantile Exchange (CME), offering investors even more ways to participate in the cryptocurrency craze. While Bitcoin futures have been available for days they actually began trading on the Chicago Board Options Exchange last week they now enjoy a much wider audience. The CME is the worlds largest futures exchange. Bitcoin prices are now nearly 20 times higher than at the start of the year, and euphoria doesnt seem to be cooling off. This morning, Bitcoin analyst Ronnie Moas of Standpoint Research , told CNBC that the cryptocurrency could soon be worth $300,000 to $400,000 based on surging demand and a limited supply. Last week, Chamath Palihapitiya, founder of venture capital firm Social Capital and co-owner of the Golden State Warriors, claimed Bitcoin will reach $1 million in the next 20 years. Yet 51 out of 53 economists polled last week by the Wall Street Journal say they think Bitcoin is in a bubble. Here are three things that could pop that bubble. Yes, the same financial instrument that helped boost the price of Bitcoin in recent days is a double-edge sword. For starters, futures contracts allow investors to do something they havent been able to do before. Risk takers can now bet on whether Bitcoin prices will rise or fall. Whats more, because futures contracts are derivatives, they allow investors to bet on the movement of the underlying assets (in this case, Bitcoin) without actually owning that asset. Why is that important? Investors can now scratch their cryptocurrency itch without having to actually buy Bitcoin on the open market. In theory, then, demand for the actual cryptocurrency could wane driving prices down even as psychological interest in Bi Continue reading >>
Now The Bitcoin Bubbles Burst, Whats The Next Big Thing?
Home > Now the bitcoin bubbles burst, whats the next big thing? Now the bitcoin bubbles burst, whats the next big thing? There goes bitcoin. The worlds most popular cryptocurrency has spent much of the past week in the grip of an old-fashioned crash. Its value peaked just before Christmas at $19,434 per virtual coin. Last week, it plunged to more like $9,000. Down more than 50% in a month and many, many billions along the way. Bitcoin isnt the only one to have flipped. Other well-known cryptocurrencies, including ripple, ethereum and litecoin, are having a torrid time too. This will have come as absolutely no surprise to anyone with more than a decade of experience in any market. I have pointed out that the cryptocurrency boom has been about as obvious a speculative mania as markets have ever seen. I have noted over and over that a private crypto cant ever be money for the simple reason that governments wont allow it to be this crash may have been triggered by talk of banning bitcoin trading in South Korea. I have refused to accept the idea that cryptos are somehow like gold money that isnt government-sponsored, but is still universally accepted as a global store of value. Gold has many thousands of years of history as money. It is approved by central banks (they all hold vast hoards of it). It has a genuinely limited supply (algorithms can be changed, a couple of billion years of geology cannot). And it has an intrinsic value (you can make stuff with it). Cryptocurrencies have none of these things. But none of this means you shouldnt be interested in the crypto boom, bubble and bust. Perhaps the world of money is changing and perhaps buying cryptos is a long-term way to build your wealth. Maybe this seeming crash is a mere stumble on the road to total monetary dominat Continue reading >>
7 Cryptocurrencies To Watch In 2018 If Youre On The Hunt For The Next Bitcoin
7 cryptocurrencies to watch in 2018 if youre on the hunt for the next bitcoin Analysts pick the bitcoin rivals to read up on now: Litecoin, Monero, Neo, Cardano, Ripple, Iota and Bitcoin Cash MarketWatch photo illustration/iStockphoto Whatever the cynics out there want to call bitcoin, its BTCUSD, -2.03% insane rally continues to befuddle the haters and enrich the crypto faithful. Fear of missing out can have a powerful and dangerous influence on financial decisions. Its playing out in a big way right now as many of those whove missed out on the digital currency craze kick themselves and frantically search for the next bitcoin or something even better. But does that even exist and is it worth the risk to invest? While hes still extremely bullish on what lies ahead for bitcoin, George Tung, co-founder of Cryptos R Us and a veteran of investing in cryptocurrencies, says theres still plenty of upside opportunity in lesser-known coins. Will we see another coin with a market cap exceeding bitcoin? he said. Yes, I believe that is definitely possible within the next three to five years. Related: Bitcoin and cryptocurrency on Twitter: The most important people to follow Hitesh Malviya, the crypto consultant behind ItsBlockchain.com, says that bitcoin is obviously the place to be during bullish explosions like the one were seeing right now, but, in the long run, the big gains in cryptos lie elsewhere. The alts industry is new and it will take at least a few years to become mainstream, he said, adding we can see 10x gains like bitcoin this year, in many alt-coins. Related: Crypto chatter on Reddit is up 930% this year. So... is THIS the top? But with more than 1,300 alt-coins basically any digital currency that isnt bitcoin to choose from, its no easy task uncovering potential w Continue reading >>