Interesting article here in Bloomberg about the Bitcoin Bubble...
https://www.bloomberg.com/news/feat...-ridiculous-blockchain-is-dangerous-paul-ford
It's why my wife will pay you €50 to get rid of my record collection out of the attic, even though to me it is clearly worth €10,000.
So the question is often asked, what gives it any 'intrinsic' value? Personally, I think all value is subjective and effectively in the eye of the buyer and seller.
It’s a matter of when, not if, the Bitcoin bubble will pop, according to Allianz Global Investors.
“In our view, its intrinsic value must be zero,” Stefan Hofrichter, the company’s head of global economics and strategy, wrote in a recent web post. “A bitcoin is a claim on nobody – in contrast to, for instance, sovereign bonds, equities or paper money – and it does not generate any income stream.”
https://www.bloomberg.com/news/arti...hless-bubble-may-pop-soon-allianz-global-says
And now Bitcoin is back above $8,000, so unpredictable.
Media won't ignore whacky stories like that. Those guys were few and far between. Nobody could consider borrowing to invest a wise move.We no longer hear from the people that re-mortgaged their homes and invested life savings in bitcoin this time last year.
Sure, in the same way as there was hardly any chatter here about crypto pre-November 2017 but the tech was still being worked on.Even this forum has become very quiet.
Coeure and Carstens are central bankers. They're never going to be supportive of something that goes against the centralised distribution and management of money. Last week, Christine Lagarde of the IMF suggested that Central Bankers had to consider digital currency seriously or get left behind. Of course, she still disses decentralised crypto but its decentralized crypto that brought her consideration around to this point.Coeure also said he agrees with BIS head Agustin Carstens, who in June said, "Cryptocurrencies are, in a nutshell, a bubble, a Ponzi scheme and an environmental disaster."
What becomes of Bitcoin remains to be seen (as it's the pre-cursor to a host of crypto projects that have improved upon it in many ways). However, it's thanks to Bitcoin that crypto and blockchain projects have emerged. As I've always stated here, the speculation has to be decoupled from the tech. Those working on the tech will continue to do so. Many in the industry were distracted by the hype from Nov-Jan and once it died down, they've had the opportunity to go back and concentrate on building the tech.It looks like the fad that was bitcoin is working it's way to zero, with nothing actually built of use from it as yet. For the people that defended it previously does the argument still hold? genuinely curious if the belief is still there?
ETF's will be approved and institutional money will come in - but it will be a slow burner. However, ultimately I'd expect another pump - this time with institutional money - but that's not going to happen in the short term.
What becomes of Bitcoin remains to be seen (as it's the pre-cursor to a host of crypto projects that have improved upon it in many ways). However, it's thanks to Bitcoin that crypto and blockchain projects have emerged.
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