Due to stagnation on the ICO market and doubts around the existing investment model, investors prefer to abstain from major moves while waiting for a more favorable climate in the industry. The previous investment boom led to the collapse of the ICO bubble with Venture Capital traditions wrongly projected on the emerging ICO market. Ivan Aleksandrov, the CEO of Memorandum Capital, an investment company focused on ICOs and investing in blockchain-based assets, outlines the most problematic aspects of the existential crisis of the industry and makes predictions about further trends on the market based on his significant professional experience and personal observations.
The founder of the world’s most valuable cryptocurrency company said that he does not believe the initial coin offering (ICO) funding model will prove to be anything more than a fad. Jihan Wu, CEO of bitcoin mining conglomerate Bitmain, made this claim during an interview with CoinGeek, arguing that the so-called ICO bubble is “unsustainable”
The post ICOs an ‘Unsustainable Financial Bubble’: Jihan Wu appeared first on CCN
Steve Wozniak has been in the technology industry for a long time, and he has seen it all. He was there during the dotcom era, and he believes that blockchain is similar to the dotcom bubble. Wozniak, who founded Apple with Steve Jobs four decades ago and has watched it become the biggest tech company in the world, believes that blockchain has the potential to transform the world. He is especially optimistic about Ethereum, whose ability to host decentralized applications gives it an edge over other blockchain projects, he said.
The first half of 2018 hasn’t gone according to plan for most cryptocurrencies. Indeed, there is plenty of reason for short-term holders to sell off their holdings. However, there are some things to keep in mind. eToro CEO Yoni Assia is convinced selling cryptocurrency now would be equivalent to selling Apple stock back in 2001.
The Future of Bitcoin Is Still Bright
Right now, things are not looking all that great for most cryptocurrencies. More specifically, all currencies have lost anywhere from 40% to 65% of their peak values established in late 2017 and very early 2018. That in itself is plenty of reason for speculators, newcomers, and permabears to dump their coins on the market. Whether or not that is actually what is happening remains to be determined.
Bitcoin is a bubble! Bitcoin is a scam! Bitcoin is a Ponzi scheme! Bitcoin will crash soon! How many times have you heard these and similar comments from people who seem completely convinced they are right? Too many times, right? Well, me too. Bitcoin, and by extension the whole cryptocurrency industry, has been described as the biggest bubble in recorded history by more people than we care to remember. Such statements are particularly bold considering that there have been some huge bubbles over the years, such as the Dutch tulip bubble of the 1630s, the Japanese real estate and stock market bubble of the 1980s, and the more recent dot-com bubble of the early 2000s. Will all these doubters become convinced that Bitcoin and the blockchain are here to stay and that ‘a bubble’ is the one thing it’s not?
Ignoring pretty much every piece of information outside of Bitcoin’s chart, Bank of America has officially announced that the greatest bubble in history is popping, but for real this time.
The Greatest Bubble in History
For at least the 279th time, Bitcoin is dead.
As noted by Bloomberg, Bank of America’s Chief Investment Strategist Michael Harnett made the claim that the gold standard of cryptocurrency’s bubble has popped in a Sunday note. “The cryptocurrency is tracking the downfalls of the other massive asset-price bubbles in history less than one year out from its record,” claims the media company’s report.
When it comes to talk of “The Bitcoin Bubble,” the FUD never stops — especially when it comes from traditional financial institutions like Morgan Stanley.
They Look the Same (But Not Really)
According to Sheena Shah, a strategist at Morgan Stanley, there are similarities between Bitcoin and the Nasdaq during the 1998-2000 technology bubble — with his argument centering around the fact that both experienced massive run-ups before dramatically decreasing in value.
As displayed in a chart from Bloomberg and Morgan Stanley Research, Nasdaq and Bitcoin appear to have followed very similar patterns. However, the timeframe in question is highly skewed — and apparently illustrates Morgan Stanley’s ignorance to the fact that Bitcoin has existed for nearly a decade.
Think cryptocurrency is a bubble ready to burst? Think again, says the ex-head of the Commodity Futures Trading Commission.
Too Deflated to Pop
According to ex-Commodity Futures Trading Commission (CFTC) Chair Jim Newsome, cryptocurrency is not a bubble on the verge of bursting. He believes this since the industry is still in its infancy and the vast majority of institutional money is still holding off on entering the market, primarily due to uncertainty regarding future regulatory measures.
Additionally, it is worth noting that the vast majority of mainstream investors have yet to get involved with cryptocurrency, and many who bought at or near all-time highs in December and January have been scared off.
If you haven’t heard of Bitcoin by now, you’ve probably been living under a rock. However, while many people know what Bitcoin is – and have even willingly put forward large amounts of their own money to invest in it, despite having heard of it for the first time yesterday – very few people know much more beyond that.
You don’t need to know all the technical details behind Bitcoin to get started – that would take far too long – but whether you’re planning to invest in the world’s biggest cryptocurrency or not, a little information about it can go a long way.
As Bitcoin (BTC) continues to languish far below its December high of around $ 20,000, speculation is rife as to whether this is the sound of the bubble bursting.
The incredible recent volatility in BTC prices has in no way diminished the interest of investors, who are pondering what 2018 has in store for the world’s most popular cryptocurrency. Can it repeat 2017’s astonishing return? Are recent price swings based on the cryptocurrency’s actual utility and value? Or are they, rather, the result of speculators jumping in and out for quick profits in an overheated market that, in fact, needs to cool off?
Fortune has devoted the entire front page of its first 2018 edition to Bitcoin, announcing it has “all the answers” about its behavior this year.
A Bitcoin ‘Platypus’
In an extensive analysis of the potential upsides and downsides for investors over the next twelve months, the publication focuses on bubble fears and includes some surprises from cryptocurrency industry figures.
“Just like the platypus is not good at being a reptile, a beaver, a duck, or an otter, but it’s great at being a platypus,” Blockchain Capital’s Spencer Bogart told the publication in discussing Bitcoin’s status.
The list of experts and talking heads eager to belly up to the bar and spout forth on why Bitcoin is a bubble and we’re all fools for believing in it is, as Goose would say, long, but distinguished. The latest expert to lend his voice to the bubble echo chamber is Columbia University professor Jeffrey D. Sachs.
Sachs, who is also a published author and director of the Center for Sustainable Development at Columbia University, penned an article in The Boston Globe today wherein he explained in a very concise and easy to digest manner why Bitcoin is a bubble that is ultimately doomed to collapse.
Many top economists from around the world have come forward to state their opinion on Bitcoin. A former Morgan Stanley economist believes that Bitcoin is one of the most dangerous speculative bubbles he has ever seen.
The Future of Bitcoin
As Bitcoin is constantly reaching a new all-time high price, many top economists and investors have come forward to predict how Bitcoin is going to perform in the future. The most prominent statement came from JPMorgan CEO Jamie Dimon, who stated that Bitcoin is a “a terrible store of value.” Of course, Jamie Dimon has a long history of bashing Bitcoin despite the fact that the company he is CEO of is dabbling in both Bitcoin and blockchain technology.
**On Today’s Episode Of The Cryptoverse:**
There have been four noteworthy bubbles in bitcoin’s life when the price exploded after rising slowly. Being speculative in nature, the bubble may soon burst, sending the price crashing down before settling at a range above the pre-bubble level.
But what is a bubble? And how do we know if we are in one?
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**On today’s episode of The Cryptoverse:**
You know I am sick to death of people talking about bubbles and how crypto currencies are in a bubble without having a freaking clue what a bubble is. Simon spent the whole episode talking about bubbles to clarify the issue.
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