American banking giant Morgan Stanley has predicted a dire end to the bitcoin phenomenon, comparing it to the tech bubble of 2000. But this time, according to the bank, events will escalate much faster.
Some 18 years ago, the Nasdaq rallied 250 to 280 percent in its most “exuberant” periods ahead of bear markets, just like cryptocurrency market does, Morgan Stanley said in a note to its clients.
“Just that the bitcoin rally was around 15 times the speed,” said Sheena Shah, strategist at Morgan Stanley, as quoted by CNBC.
Since emerging in 2009, bitcoin has seen five bear markets with price drops of between 28 and 92 percent. In the most recent fall, bitcoin lost nearly 70 percent in value since the December peak of $20,000.
There are similarities with the Nasdaq behavior of 2000. “The Nasdaq’s bear market from 2000 had five price declines, averaging a surprisingly similar amount of 44 percent,” Shah said.
A rise in trading volumes could be another indicator of bitcoin’s nearing collapse, added the Morgan Stanley analyst. “The follow-up rally for both bitcoin and the Nasdaq always saw falling trading volumes,” Shah said. “Rising trade volumes are thus not an indication of more investor activity but instead a rush to get out.”
Bitcoin was up 2.88 percent on Tuesday, trading near the $8,500 mark. Its rival ethereum was sliding 0.25 percent at the time of writing and was trading at $529. The majority of cryptocurrencies were trading higher, with qtum digital token gaining the most. Qtum surged 31 percent and rose as the 20th largest cryptocurrency, according to Coinmarketcap estimates.
https://www.rt.com/business/421797-bitcoin-collapse-dotcom-bubble/
“….price drops of between 28 and 92 percent. In the most recent fall, bitcoin lost nearly 70 percent in value…..”
This is exactly what makes it completely valueless as a currency. It’s bad enough that the dollar lost all its value over several generations, but Bitcoin’s value can change drastically in a day.
It can’t be money if there’s no predictable value to it. It’s a game, like blackjack or roulette, but it’s NOT money if no one can set a consistent value on it.
“What did your new car cost?”
“It would have been 3,000 Bitcoin this morning, but it cost me 5,000 Bitcoin because I didn’t get to the dealer until the afternoon”.
You cannot base any kind of stable economy on this nonsense.
The casino gulag as Max Keiser trends forecaster would say.