Buffett and Dimon Called the Fall of Bitcoin (BTC)
Bitcoin’s (BTC) price has fallen to 4,474.59, down 30% in a month, 50% in 6 months and about 80% since December.
The crypto-currency experts are blaming volatile stock markets to hard forks. But, likely is a long-term unraveling of the hype, exaggeration and populist fantasies that drove the crypto market North last year.
“Bitcoin was meant to make all of its investors rich, something that held particular appeal to a millennial generation hungry for a financial boost in a world of crushing student debt, income inequality and low quality jobs. It was meant to be free of Wall Street’s corruption and the U.S. government’s meddling technocrats. It was meant to be secure, with a price that would go ever higher. For the hardcore evangelists, it would reward its acolytes when the inevitable financial apocalypse arrived. The dollar was destined for scrap.
And it was meant to show that we should all stop listening to fuddy-duddy “experts” like Jamie Dimon, Warren Buffett and Jack Bogle. The old closed ways of investing would be usurped by the buying power of the masses,” said Lionel Laurent.
This did not happen
The Bitcoin bubble of Y 2017 enriched only insiders such as Bitcoin mining companies and crypto-exchanges, and the early birds and tech elites who cashed in along the run up.
For those who arrived late to the party, it has been a wipe-out.
About $700-B has been wiped from the value of the world’s #1 digital currency since January.
Nothing on Bitcoin turned out.
As a means of payment, it is cumbersome, volatile and expensive. It has destroyed value rather than storing it. Its decentralized technology was sold to investors as being unique. It has Not!
The “hard forks” created numerous Bitcoin spin-offs over the past year, and the vested interests of those who make money from doing this have triumphed over the dreams of a neutral blockchain system that would treat everybody equally.
Bubbles and market crashes are a part of history.
If regulators do their job of warning consumers of the risks, as they did with Bitcoin then people be free to do what they want with their cash.
Bitcoin is down but not out yet.
Global regulators are working to find an effective way to rein in the wild west action. And if the frustrations that drove people to put their savings at a virtual ponzi scheme are not resolved, people are setting up for more trouble in the future.
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