Nov 27, · Bitcoin, ethereum, Ripple's XRP, bitcoin cash, litecoin and chainlink—the biggest cryptocurrencies by market value—have fallen sharply after rocketing higher through November. The bitcoin Author: Billy Bambrough. How Bitcoin Could Crash The Markets; Its 15X Crazier In Asia. By. Mauldin Economics - Dec 27, , pm. Bitcoin mania is starting to look like a religion. I say that because both bitcoin and religion involve faith in the cryptodayly.de: Mauldin Economics. Dec 16, · One of the few publicly-known Bitcoin whales in existence is outlining three scenarios that could cause Bitcoin to suffer a major downturn. The pseudonymous whale Joe, who is known for placing large bets on the crypto exchange Bitfinex, says he expects many early investors to pull out once the price of BTC is “high enough.”.
How bitcoin could crash the marketsWill Economic Meltdown Benefit or Cause Bitcoin Market Crash?
Also, once BTC price is high enough, holders are going to cash out en masse, leading to a sudden balance shift that precipitates a parabolic curve blow-off. The whale also points to potential sales from investors who are expected to one day receive BTC that was frozen in the collapse of the crypto exchange Mt. Come on, show some conviction, lead by example. Maybe others will follow. Which I think is total bullshit, personally. In the next bear phase I expect alts to lose a bigger share of their capitalization yet.
Still, there are three plausible ways the bursting of the Bitcoin bubble could gore the aging bull market in stocks, which is about to turn 9 years old in March.
In that sense, Bitcoin has a tangible connection to stocks. In the late s, investors started noticing something: All a company would have to do was to put a dotcom at the end of its name or include a sentence in a press release about launching an e-commerce site, and the stock would jump.
The imaging company Eastman Kodak recently hitched its struggling wagon to cryptocurrencies—initially by launching its own virtual currency, KodakCoin , which can be used by photographers to securely sell the rights to their photo and receive payments using blockchain technology.
Since the announcement, on Jan. Kodak then doubled down on crypto. According to news reports out of the CES consumer technology show, Kodak plans to partner with a company that will lease Kodak KashMiner computers to mine for Bitcoin. And Kodak is hardly alone. They are changing their entire business models.
Late last year, the biotech equipment maker Bioptix changed its name to Riot Blockchain and its business plan to investing in cryptocurrencies and blockchain technology. The same thing happened with Long Island Iced Tea, a little-known beverage maker that changed its name to Long Blockchain and its business model to investing in blockchain technology. It all sounds promising. But as many market watchers point out , Pets. If you believe in bitcoin paradise, fine. As of this month, bitcoin is doing it.
Is bitcoin in a price bubble? I think so. The problem spreads further when lenders themselves are leveraged. For bitcoin mania to infect the entire financial system, like securitized mortgages did in , buyers would have to use leverage.
Meanwhile, this month commodity regulators allowed two different US exchanges to launch bitcoin futures contracts. To get why, you need to understand how futures exchanges work. If you close your trade at a profit, the exchange clearinghouse guarantees payment. They all pledge their own capital as a backstop to keep the exchange running. In it he urged the regulator to require a separate clearing house for bitcoin futures so customer losses do not infect brokers who do not want to be involved.
He was unpersuasive. But no. Good question. To me, that seems extremely unwise. But I expect that will change as the whole world including people who have never before invested in anything falls prey to the bitcoin cult.
The Chinese government has cracked down on it, so now the main action is in Japan.