Bitcoin and blockchain what will survive if the bubble bursts
Past systemic crises were fuelled by people getting in debt to fund their investment. But that may already be changing. Whatever its severity, a bubble-pop would have at least one consequence: more regulation. As an increasing number of people — and even institutional Wall Street investors — join in the bitcoin mania, financial authorities worldwide will adopt a more interventionist stance.
A bitcoin crash would only precipitate what is underway, explains Brent Goldfarb, an associate professor of management at the University of Maryland. There would be an upswing in complaints and political pressure to do something about [bitcoin].
That's what created the US Securities and Exchange Commission, which was established after the crash of To that argument, Cuban says crypto, much like gold, is driven by supply and demand. But, "all the narratives about debasement, fiat, etc. The biggest sales pitch is scarcity vs.
That's it," he tweeted on Monday. In December, Cuban told Forbes that bitcoin is "a store of value Learn how to hedge " — or offset a potential investment loss, as he successfully did during the dot-com boom.

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Officials around the world — including U. Treasury Secretary Janet Yellen and European Central Bank President Christine Lagarde — have warned about the use of cryptocurrencies like bitcoin in illicit transactions, such as money laundering. That's because of the pseudonymous nature of these currencies — you can see where funds are being sent but not who sent or received them.
Treasury Department planned to charge several financial institutions for money laundering using cryptocurrencies. Even leaders in the cryptocurrency industry have acknowledged the risk of regulation to their businesses. The CEO of Coinbase, the cryptocurrency exchange that went public in a blockbuster direct listing last week, warned that regulation was "right up there with cybersecurity" in terms of the risks to crypto.
The head of rival firm Kraken said he fears there could be " some crackdown " on digital assets. It has no intrinsic value. Also, some major firms like Tesla and institutional investors are now backing bitcoin, which bulls believe offers something of a "cushion" for the asset that plunged sharply in the so-called " crypto winter " of Climate change Another big risk for Isaacs is bitcoin's huge carbon footprint.
To this point, any currency has been centralized, that is, issued by a government. Consider that your paycheck is directly deposited into your bank account, and you probably spend it by swiping a card or using Venmo instead of shuffling around pieces of paper or discs of metal. Bitcoin is all digital. That makes Bitcoin tricky, economically: Depending on how you value software or your political beliefs, Bitcoin was a bubble from the start. Practically speaking, however, Bitcoin is probably always going to have some form of value.
So the question becomes, can Bitcoin become an everyday currency, not just an asset traded by tech billionaires and that guy calling himself John Galt on Reddit? Will you use Bitcoin to buy beer at the corner store? Will your paycheck ever arrive in Bitcoin? Probably not, and… therein lies the problem.
Thanks to the Federal Deposit Insurance Corporation, you are most likely getting your money back. If thieves blow the doors off the vault and leave with the physical stacks of paper your bank has on hand to represent your paycheck, the government will send law enforcement to find the thieves, and you are most likely getting your money back.
This means Bitcoin is always going to be volatile: Bitcoin is built to be a true free market currency, and the free market is inherently a roller coaster, affected by a host of factors. The current spike in value, most economic experts agree, is because Bitcoin is so hot right now.
In other words, people are invested financially in Bitcoin, but their emotional investment is pretty much nil. So what happens when demand dies down as people move on to the new fad?
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Is the bubble about to burst for Bitcoin? - Inside Story
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