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Bitcoin Is Worthless, Bubble May Pop Soon, Allianz Global Says


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It’s a matter of when, not if, the Bitcoin bubble will pop, according to Allianz Global Investors.

 

The cryptocurrency is worthless, even if blockchain technology could bring significant benefits to investors, said the investment arm of Europe’s biggest insurer, which manages almost 500 billion euro.

 
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“In our view, its intrinsic value must be zero,” Stefan Hofrichter, the company’s head of global economics and strategy, wrote in a recent web post. “A bitcoin is a claim on nobody – in contrast to, for instance, sovereign bonds, equities or paper money – and it does not generate any income stream.”

 

While one could make the same argument about gold, the yellow metal has been widely accepted as a store of value for more than two-and-a-half thousand years -- compared to less than a decade for Bitcoin, he said.

Textbook Case

In addition, the world’s largest cryptocurrency “ticks all of the boxes” of the essential criteria for any asset bubble, including overtrading, “new-era” thinking and rising leverage, he wrote. Bitcoin mania is a textbook-like bubble, “one that is probably just about to burst.”

 

Hofrichter joins a chorus of commentators casting doubt on the underlying value of the digital currency. University of Pittsburgh researchers concluded it’s “an asset which has no value by traditional measures” and economist Nouriel Roubini called it the “biggest bubble in human history.”.

 

Bitcoin traded 0.7 percent higher at $9,126 as of 2:45 p.m. Tokyo time. It pared an advance of about 2 percent after Google announced it would ban online advertisements promoting cryptocurrencies and initial coin offerings starting in June. The digital currency has more than halved from its December peak.

 

Still, the bursting of the Bitcoin bubble won’t have a large impact on conventional asset classes such as stocks and bonds, according to Hofrichter.

 

“Bitcoin’s demise would have few spillover effects on the ‘real world,’ since the market for this cryptocurrency is still quite small in size,” he said. “As a result, we believe that the risks to financial stability stemming from bitcoin are negligible -- at least as of today.”

 

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Let's hope that  :  “What's goes up, must go down ...“

I wish it could happen soon, since I need to buy a new graphic card !   

With all those greedy crypto-currency miners the GPU prices have been sky-rocketing lately !   annoyed.gif

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1 hour ago, mona said:

Let's hope that  :  “What's goes up, must go down ...“

I wish it could happen soon, since I need to buy a new graphic card !   

With all those greedy crypto-currency miners the GPU prices have been sky-rocketing lately !   annoyed.gif

Anyone who bought Bitcoin when they 1st came out became rich today,  they use to be worthless and very cheap and if we knew what we know today and bought a bunch them back then, we could of cashed out and became rich . But sooner or latter because of miners most countries is going to end  up baning them, but this just gives them a good excuse,  because some countries like China have already banned them before these miners evolved and now even in the USA some banks want accept them , because there to risky that the market for them may drop out soon . They went from not being worth anything to like gold and it's digital and it's going to crash one day, just like paper money has before, if you wan't to invest in something it should be in gold or diamonds witch will always be valuable.

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37 minutes ago, steven36 said:

(...)

if we knew what we know today and bought a bunch them back then, we could of cashed out and became rich . 

(...)

 

It's true IF only you (or very limited number of ppl) had known that.  The prices were initially pretty low since hardly anybody was expecting such a fast grow of its popularity.  

However IF somehow that knowledge had been widely spread in the first place, the crypto-currency prices would have never been low.    :P

Life is tough unfortunatelly......   ;)

 

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29 minutes ago, mona said:

 

It's true IF only you (or very limited number of ppl) had known that.  The prices were initially pretty low since hardly anybody was expecting such a fast grow of its popularity.  

However IF somehow that knowledge had been widely spread in the first place, the crypto-currency prices would have never been low.    :P

Life is tough unfortunatelly......   ;)

 

 

 

Quote

 

How Much was 1 Bitcoin Worth in 2009?

Bitcoin was not traded on any exchanges in 2009. Its first recorded price was in 2010. Technically, Bitcoin was worth $0 in 2009 during its very first year of existence!

How Much was 1 Bitcoin Worth in 2010?

Bitcoin's price never topped $1 in 2010! Its highest price for the year was just $0.39!

 

https://www.buybitcoinworldwide.com/price/

If we would of bought them in 2010  we all be bloody rich by now. :tooth:

 

They was worth 39 cent in 2010 today they worth  $8,367.22 US Dollars... Back in 2017 would of  been  time to cash out some exchanges hit $18,000.

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13 minutes ago, jiski said:

All want be rich.  Not easy way.  Luck, for sure. 

 

 

It was easy to some

Quote

 

Winklevoss twins, 'Bitcoin Jesus' head the list of people getting very rich from the cryptocurrency

  • In April 2013, the Winklevoss twins had $11 million in bitcoin at $120 a coin. That's a combined worth of just more than $1 billion with bitcoin near $11,500 this week.
  • Venture capitalist Tim Draper bought nearly 30,000 bitcoins in a 2014 U.S. Marshals Service auction. Draper confirmed to CNBC he is still holding all those coins.
  • Chamath Palihapitiya owned the equivalent of $5 million in bitcoin in October 2013, according to TechCrunch. By doing the math, that holding is worth at least $290 million at today's prices.

 

https://www.cnbc.com/2017/12/05/winklevoss-twins-head-the-list-of-people-getting-very-rich-from-bitcoin.html

 

 

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18 minutes ago, jiski said:

Mr. Steven36,  I say, with luck all easy.  No luck all very difficult.  Thank you.

I know people  who are rich and it is not always luck  , When they was young started there own business   they invested there money into buying rental property   over the years became rich and they donate to charity  everything  you donate is a tax write off  and you just set back and live off the interest  even though these people was rich they kept working full time jobs  just dragging in more money in hand over foot. Many people in my country started  out poor and worked there way up, self made millionaires . Around the coast you see a lot of that here, were people own there own business,  they get rich off the rich  and the poor as well.  Now stocks and bitcion is just luck,  like playing cards but many became rich from plain hard work.

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Mr. Steven36,  we know 2+2 = 4.  Always.  For all.

 

Yes. some are rich from plain hard work.  Many work hard day & night.  Start business, fails.  It no science like 2+2=4.  Not formula to rich.  So, I say, luck make rich.  Hope you understand I say why.

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1 hour ago, jiski said:

Mr. Steven36,  we know 2+2 = 4.  Always.  For all.

 

Yes. some are rich from plain hard work.  Many work hard day & night.  Start business, fails.  It no science like 2+2=4.  Not formula to rich.  So, I say, luck make rich.  Hope you understand I say why.

Always theres a formula behind it and most that  i know thats rich  started out doing something illegal  and  bought there own business with the money and went legit . The smart ones did anyway , Jobs went away  and they poor got poorer,  but the rich stayed  rich,  because they just moved the jobs overseas were they  could pay lower wages.  Now were I live you just about have to move away  to get a job , unless you're a white color worker and it was never like this tell the 21st century . But people that say they poor today in my country,  are not even poor compared  to the poor people of the 1920s or 1930s.  Many young people today never had to hunt and fish to eat, or had to do farm work just so they had something to trade to get things from the store . People don't know how lucky they have it. Even Apple when it 1st started those guys  started out selling illegal phone boxes they made that gave people in collage free long distance . Spotfiy started out using pirated sources and went legit latter on . They also owned UTorrent  before BitTorrnet  bought it. One of the dev  that makes Spotfiy  help make  UTorrent and his name is still credited on every copy of UTorrent,  Ludvig Strigeus , Spotfiy bought it  just to get him and then they sold it. Microsoft done some illegal stuff before in the past too like stealing  programs  that were copyright protected to put in windows. And Google is still  under fire for stealing Java  and Microsoft  stole it before and lost in a court of law and was fined very heavy for it. 1st PC i bought  came with stolen Java,  it was called Microsoft Java . They also stole quick time codec that was the good old days now Windows 10  can play most formats out the box if they have a newer processor that uses DX 12  they got so much money they bought them some codecs . They use to steal them .:tooth:

 

Google, Advertising, Money and Piracy. A History of Wrongdoing Exposed.

https://thetrichordist.com/2013/02/07/google-advertising-money-and-piracy-a-history-of-wrongdoing-exposed/

 

Was Microsoft's Empire Built on Stolen Code? We May Never Know

https://www.wired.com/2012/08/ms-dos-examined-for-thef/

Quote

 

Microsoft stole stuff from their business partners, breaking "no sharing of proprietary information" contracts when needed. And sometimes they simply bought out the competitor and rebranded their stuff as a Microsoft product.

 

This formula made the richest man in the world the richest man .:lol:

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