The same Bitcoin speech being in a bubble has been harassing since late 2013, and many times before and after. The discussion continues today because Bitcoin continues to break the barrier by letting pessimists ask, "When are we going to hear pop?"
Still, Bubble or not, Bitcoin seems unfazed on the negative press, focusing only on the huge adoption and the increase in promising market conditions. It is, however, even on the upswings, a scary ride.
It's probably safe to understand what would happen if there was a catastrophic failure and the Bitcoin market pop like all the others it was compared to
Risk for The World Economy
The obvious starting point would be to discuss what would happen to anyone who invested a lot of money in Bitcoin when it collapsed. It's simple, they would lose money. It is more interesting to examine the effect on the global economy of this revolutionary monetary system.
In all honesty, if Bitcoin were erased from the face of the earth, the world economy would not even know it. Bitcoin is tiny compared to some of the other big players in the market. The residential real estate market is more than 500 times higher than that of Bitcoin.
Comparing the market capitalization of cryptocurrency and the money involved – a little over $ 350 billion – to the money of the Internet bubble, it is almost negligible
Adrian Lee, a senior lecturer in finance at the Sydney University of Technology, explains in an Australian example:
"So that would not affect the Australian dollar If you think about it, there are billions of dollars in Australian trading while Bitcoin is worth at most 200 billion dollars in total, so it's almost nothing compared to trillions of dollars in foreign currency.
Moreover, the lessons seem to have been learned in the bust of the 2008 real estate market, or it may be that Bitcoin is a different asset, but it's unlikely that there's a lot going on. 39 loans to buy Bitcoin
RMIT Professeu E Jason Potts adds:
"There is very little evidence that someone borrows money to buy cryptocurrency and if I do not have money. was bank or lender, I could never lend money. "
Could this be spark?
The largest field of action of Bitcoin, even for opponents, is not so big. Many call Bitcoin a bubble because of its size and the speed of its adoption. But as we have already said, Bitcoin is tinted, and it is still in the early phase of adoption.
Potts goes on to explain why the collapse of Bitcoin would not even scour global markets or cause bleeding. damaging repercussions. At the same time, it essentially confirms that Bitcoin is too small and too young to be a bubble.
Potts uses the analogy of Bitcoin as an email in 1994, indicating his early adoption phase, he goes on to explain: "The kind of people who would hold pension funds .. they are not in this market and could not be for a while, "he said
This would limit the fallout on the economy in general. a disaster scenario. "If it happened, it would only be people speculating on it, maybe people who use Bitcoin and maybe the exchanges could lose money, but the exchanges do not require much from overhead. "Things are still going well," said Mr. Lee.
The Bubbles Are for the Big Boys
So, it seems clear that the collapse of Bitcoin can not have any effect on the global market … too small to even collapse.The effect of the disappearance of Bitcoin would only affect those who have invested money – a little bit as a business venture, but when a business fails, it is not considered a bubble, a pop;
Maybe we should let the bubbles talk for the moment, while Bitcoin is trying to to catch up with the markets that have, and may, appear like the real estate market.This does not mean that Bitcoin can not collapse – but can it burst, not likely.