So everyone is talking about the BTC bubble bursting very soon. How is this supposed to happen? I don't quiet understand. It's not like a share of a company, that could do some bullshit and go bancrupt. It's a currency with a limited maximum amount. So why should it crash?
Should we fear the Bitcoin bubble burst as the main pair for XLM is BTC?
Hey, I'm a fervent defensor of Stellar, and I've been buying since 1st of July 2017, with some buy at 0,014 eur on the 14th of July (National Day, here in France, yay!), when XLM was still paired against EUR on Kraken.com. XLM is by far my best investment of choice, with more than 80% of my portfolio dedicated to stellar. I simply love stellar and its applications. But at the moment, in order to buy XLM we need to buy first BTC and I fear that when the Bitcoin bubble will pop - eventually, Stellar will suffer a lot. A lot more than other cryptos that are paired with Dollar and Euro. I know Stellar has been doing well against and with Bitcoin price raise and correction so far, and its curve is living by its own - somehow, but this is the only thing I actually fear about Stellar. This stroke me today. Do you guys have any thoughts on this? Séane
Could gold/precious metals be a solid investment in light of possible Bitcoin bubble burst?
Since some of the appeal of Bitcoin is that it is not a currency regulated by governments, I feel that precious metals/gold values could increase drastically if/when the Bitcoin bubble bursts. I think that people will feel burned by the fact that they just bought a crypto and want something physical to back up their money.
Cryptos are big enough now that when the current Bitcoin bubble bursts it will affect the larger economy.
Whether you are bearish or bullish in the long term, Bitcoin is quite obviously in the midst of a bubble. Between the time I write this and a year ago, the Bitcoin price has increased from $640 to its current value of $5700 - an annual increase of 890%. This actually means bitcoin is one of the fastest appreciating financial assets in U.S. history (all similar rises were, of course, bubbles). While last month it seemed that this meteoric rise might slow on bad news in the form of China shutting down crypto exchanges, this turned out to not be the case. Bitcoin has continued to rise at a truly impressive pace. While this current environment would seem like a bubble ready to burst, I would argue otherwise. The story from Wall Street right now is that in fact, many more people want to invest in bitcoin than are currently doing so. However for many of these investors, the headache of having to go to bitcoin exchanges and learn about wallets etc. is keeping them at bay. They are waiting for more traditional instruments to come out of Wall Street before jumping on board. And those instruments are coming. With Goldman Sachs discussing opening up bitcoin operatons, Bitcoin ETF's finally passing muster and being allowed to open, cryptocurrency based investment funds such as the one provided by Metis Management or the EToro's Crypto Fund coming online, and Wall Street beginning to have talks of creating Crypto futures markets, people's access to pathways to Crypto investment is increasing rapidly. Hedge fund managers are also trying to get in on the current action. This means that Bitcoin and other cryptos are in the process of coming to a much larger market. Of course I don't have to remind any of you that the fundamentals of bitcoin have not really changed since the sub $200 price levels of 3 years ago. Its essentially the same tech. Further, acceptance by business has only marginally increased. The irrational exuberance of the Bitcoin markets, which until now have mostly been available to dedicated enthusiasts, are opening up, and the irrationality is spreading. When Wall Street does fully jump on board, we are going to see a price run up that will make the current run look pretty cute in comparison. The current Bitcoin market cap stands at 94.6 billion, but it bears remembering that all other cryptos have historically walked in near lock step with bitcoin, especially on the downward side of the bubbles we've seen in the past. The total market capitalization of all cryptos is 169.1 billion. While this is already staggering for an asset that at this time provides little more than a chance to speculate, with Wall Street really jumping on board this number could skyrocket. Compare the figure 169 billion to a single blue chip stock, such as Apple's $805 billion capitalization, and you can get a feel for how much untapped money Wall Street can provide. Further, Bitcoin no longer represents an isolated speculative bubble. Nvidia recently reported that sales of mining equipment accounted for a full 10% of their revenue. Many companies, mostly tech companies, have been using coin ICO's as a way to get around federal regulation, meaning that the value of coins is funding a lot of startup activity in Silicon Valley. ICO offerings now provide more start up funds than venture capitalism, the traditional way that startups are funded. A crash in cryptos would be devastating to these ventures. Blockchain technology unrelated to bitcoin is also taking off in a big way. Companies are starting to look at blockchains as a way to manage many operations, and are getting huge funding, based largely on the current exuberance of the bitcoin market. Look to IBM's "Blockchain Labs" for a blue chip example. A big drop in bitcoin's price will shake investor faith in these companies and provoke sell offs. Even governments are jumping on board. The state of Delaware recently launched the Delaware Blockchain Initiative to provide services to companies located in state. Whether any crash of the bitcoin sphere will ripple further than the tech world is unsure. That all depends on how "all in" Wall Street manages to get before something causes it to pop. If total crypto market cap reaches 1 trillion, which at current growth rates would only take a year, you can bet your ass that the pretty highly leveraged and longest running bull market since World War 2, which we are currently in, will take a hit. How bad of a hit depends on how much debt investors are willing to take out to jump on the bitcoin train. However, even if the bubble bursts now there will be knock on effects for those of us working in tech. I expect that my highly investment driven tech business will take a hit. tl;dr Bitcoin and cryptos are now big enough that the popping of the current bubble will have wider effects on the economy as a whole.
Can Bitcoin's Bubble Burst if Government's Outlaw it?
It seems that bitcoin and crypto-currencies make it easier for people to commit or get away with fraud and other crimes. I know it's de-centralized so no government could ever really stop it 100%, but they could still make it illegal. The government could forbid companies from accepting it, and heavily fine those that don't comply. They could make it a crime and have people punished for owning and/or mining bitcoins. Catching bitcoin users could be extremely difficult, but I think it is possible to prove somebody owns a bitcoin. The government could mandate that internet service providers stop all web traffic related to bitcoin transactions. So is it possible that government regulation could still make the value of Bitcoin collapse? Update: perhaps a better question is, how likely is it that governments will want to outlaw crypto-currencies?
To get to the china bubble. Knock Knock. Who’s there? Bitcoin. Bitcoin Who? A peer-to-peer decentralized crypto-currency that utilizes open source software and public ledger called the blockchain to provide proof of work in solving the encrypted transactions ultimately increasing security and control in your personal finances. How many Bitcoins does it take to screw the banking system? Moon ... Additionally, when talking about why Bitcoin is not a bubble, it is worth pointing out that the coin had maybe four or five “bubble bursts” throughout its lifetime. People have been asking the question “Is Bitcoin a bubble?” for the longest time now - and the cryptocurrency has always risen from the ashes. The bubble bursts on e-currency Bitcoin. Anne Renaut. AFP News. 13 April 2013. Reblog. Share. Tweet. Share. Many saw it coming, but that didn't stop the Bitcoin bubble from bursting: after rising to dizzying heights, the digital currency suffered its first true crash this week. File picture for illustration only shows a user connecting to the internet . More. Many saw it coming, but that didn ... If the bitcoin bubble bursts, this is what will happen next. Bitcoin looks like it's heading towards a major crash. If it happens, crypto-millionaires will be hit hardest while governments move to ... 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 ...
This video is unavailable. Watch Queue Queue. Watch Queue Queue Bitcoin Bubble Will Burst – But No Big Deal Bitcoin has all the hallmarks of a speculative bubble but the global economy will be fine even if it bursts, analysts say. (Shutterstock) Despite ... Bitcoin Is a Gigantic Bubble Just Waiting to Explode. ( Watch ) Free How to strategies to protect your investments now at: http://jmlbusinesspro.com/freegold... Cryptocurrency bitcoin has set another record, breaking through the $12,000 mark for the first time. Compare that with where it was at the beginning of the year, when it was trading at around ... The bubble bursts. The situation I’ve described is exactly what’s happening with bitcoin. Bitcoin price should increase because it’s a useful currency, it’s decentralised, all the things ...