Cryptocurrency has potential to cause crash similar to 2008


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Comments (12)

Aug 26, 2017

also there are red boxes around huge parts of this paper, if any one knows what that means it would b great to know

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Aug 27, 2017

No one wants to sell because they think it is going to make them a millionaire. At the same time no one is really using bitcoin for transaction except for criminal activity.

It is just a pyramid scheme. All the people that got in early will make a fortune at the expense of all the johnny come lately's who will lose a fortune. All of the bitcoin investors have to try and convince others to come in and buy to keep the pyramid sustaining.

One day the music will stop, the bottom falls out of bitcoin, and only people who were smart enough to sell walk away with a profit.

The funny part will be all the people who thought they were a genius for investing in bitcoin will then feel stupid and embarrassed.

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Aug 27, 2017

That's definitely not true. There's many millions of dollars of BTC => real goods every day (see, VPNs, other physical commodity firms accepting bitcoin as payment).

Aug 27, 2017

Yes they are accepting payment but almost no one is using it for payment.

The extent of bitcoin transactions are illegal activity and speculative gambling.

When the music stops a lot of fools will be left without a chair.

Aug 27, 2017

Can you even do simple DD?

Bitpay, used by most merchants, 2015 numbers:
~160,000 transactions per quarter in 2015 with 20%+ growth (1800% YoY per their CEO

That gives ~2M transactions per quarter. You're clueless.

Aug 28, 2017

I presume you are one of the clueless (bag)holders of bitcoin that will be stuck with loses.

That just proves my point. 160k transactions per quarter is nothing. What percentage of those are for illegal goods and\or money laundering?

Visa does 150 million transactions a day. No one is using this for legal transactions.

Aug 28, 2017

Literally the only companies using Bitpay must be vetted and verified for merchants. They were doing 2m transactions / quarter a year ago (and still growing) and are not the only one in the sector. If you assume $10-$50 per transaction, that's $80-400M / year for that specific processor. Not monster numbers, but definitely not insignificant.

Aug 28, 2017

Let's also not forget the $500 Billion remittance market where the average fee is $4 + 4% from WU.

Aug 27, 2017

Tulips are better comparison imo.

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Best Response
Aug 27, 2017

Cryptocurrency has absolutely zero chance to cause any meaningful crash in the modern economy. The reason why the Housing Crisis was so fucked is because shitty subprime mortgage loans were packaged and repackaged into hundreds of billions of dollars worth of toxic financial assets that all the major banks, insurance companies, institutional investors and people with 401Ks had significant exposure to. Thus when the original loans, that were milked dry for ways to securitize them, began to default the assets they comprised contaminated every financial institution in the market.

If cryptocurrency collapses tomorrow a couple weirdos might not be able to afford buying drugs off of the deep web anymore but people aren't going to lose their 401Ks and no one's going to be bailing out any banks over it.

As for cryptocurrency being in a bubble - it is. Just like the entire equity market. But what are you going to do about it? Attempt to time the market? It could easily rise another few years and 50% before coming back to earth again. Sure something has to give eventually - but knowing how to play that in terms of actual investment strategy is a whole other story.

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Aug 28, 2017

about cryptos being a bubble...duh.

about it causing a financial crisis similar to 2008, you clearly don't understand financial crises. if crypto crashes, it won't even cause a 20% stock market decline.

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Aug 28, 2017

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