Bitcoin bubble bursts
A couple weeks ago I posted this essay about the bitcoin bubble. Little did I know that I was just two days off from calling the peak of the bubble.
Bitcoin’s meteoric summertime surge risks coming to a painful end as Chinese policy makers move to restrict trading amid growing warnings of a market bubble.
The biggest cryptocurrency dropped as much as 40 percent since reaching a record high of $4,921 on Sept. 1, cutting about $20 billion in market value. The collapse extended to as much as 30 percent this week since China began sending stronger signals of a clampdown on Sept. 8, making this the biggest five-day decline since January 2015, when it traded at around $200.
Those of you who still believe in the value of bitcoin must ask yourself why capital controls in China would have such a dramatic impact in the global price if bitcoin is a good currency?
A much simpler explanation would be that bitcoin was never more than a financial vehicle to launder dirty money out of China's bubble economy.
Comments
Actually, it's more than that.
Actually, it's more than that. It's also a vehicle to permit money to be transacted freely while still dirty. Drug, weapon, and blood minerals dealers just loooove their Bitcoin!
Had it never been anything but a financial vehicle to launder dirty money out of China's bubble economy, Bitcoin would have lost all (or nearly all) its value in yesterday's crash, caused as it was by the clampdown by Chinese regulators.
So, today, Bitcoin is backed by, well, illicit drugs, weapons, and blood minerals! Just what I want in my pocket (NOT!)
"US govt/military = bad. Russian govt/military = bad. Any politician wanting power = bad. Anyone wielding power = bad." --Shahryar
"All power corrupts absolutely!" -- thanatokephaloides
The difference, of course,
is bitcoin can lose 40, 50 60% and still survive. Any other currency, including the Almighty Dollar, would be toes up.
the little things you can do are more valuable than the giant things you can't! - @thanatokephaloides. On Twitter @wink1radio. (-2.1) All about building progressive media.