Just More FUD: Citadel CEO Wary of Bitcoin Bubble

Citadel CEO warns that confusion between Bitcoin and its Blockchain could burst the bubble.

With the $11,000 milestone newly etched onto its belt, Bitcoin continues its rise in value while a chorus of voices sings contrasting melodies. For some, the Bitcoin price surge over the past two weeks has been nothing short of miraculous, vindicating “outlandish” predictions made months ago. The more-wary pundits are staying at an arm’s length, watching nervously as what they describe as a bubble continues to grow.

Speaking to CNBC's Leslie Picker earlier this week, Citadel hedge fund founder and CEO Ken Griffin echoed the sentiments of JPMorgan CEO Jamie Dimon, likening Bitcoin to the historical ‘Dutch tulip bulb mania’ in the 1600s. Griffin’s main concern is that people enticed by the hype of the Bitcoin bull run don’t have an understanding of the intrinsic value of the Blockchain technology it is based on.

"Blockchain's a very interesting technology that will have some very profound applications for society over the years to come.”

The billionaire is concerned that the average person on the street is simply trying to ride the wave, without understanding the applications of Blockchain technology. He suggests that the hype could end badly for some:

"I get very worried that people that are buying Bitcoins don't really understand what they're participating in other than the headline stories that it keeps going higher and I want to make sure I don't miss this opportunity to make some money.”

"So is it a fraud? No. But these bubbles tend to end in tears. And I worry about how this bubble might end."

When does the run end

There is no telling if and when Bitcoin’s rise in value will come to an end. The likes American broadcaster Max Keiser have suggested a $100,000 high in the coming years, while slightly more conservative estimates of a $40,000 high from fund manager Mike Novogratz still boggle the mind.

Conventional markets, in their simplest form, are dictated by supply and demand. While Bitcoin’s cap is 21 mln, analysts predict that its downfall could be further forks in the Blockchain in the future.

However, as the suspended SegWit2x fork proved, the community of developers, miners and traders have to reach a consensus before hard, telling changes are made to the Blockchain.

Source: Coin Telegraph




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Increasing Adoption Demonstrated by Huge Trading Weekend for Bitcoin, Soaring Prices Market-Wide

Cryptocurrency trading volumes reached nearly half of Nasdaq’s average on Sunday, showing increasing adoption.

In a sign that adoption is massively increasing, trading numbers from last weekend indicate that the volume of cryptocurrency trades exceeds that of many US equities trading markets. The volume of Bitcoin traded on this past Sunday alone was more than $5 bln – more than the IEX, the Chicago Stock Exchange, as well as many others.

Two weeks ago, a similar volume spike was caused by the sudden (and brief) reversal of fortunes between Bitcoin (BTC) and Bitcoin Cash (BCH), as the cancellation of the scaling proposal SegWit2X led to a massive pump of the latter. Prices for BCH rose to a stunning $2,500, and many speculated that the community had begun shifting loyalties.  As the BCH price pump continued, BTC lost 25% of its value, dropping to $5,500.

Yet the reversal was reversed again, as Bitcoin came roaring back and Bitcoin Cash slumped. The price of Bitcoin quickly returned to its previous level, then consolidated at an all-time high before pushing through $9,000 and threatening the carefully-watched $10,000 level this weekend.

Adoption growing

Devotees to either cryptocurrency will argue that the other is a ‘fraud,’ echoing the words of anti-crypto incumbents. However, a more emotionally removed view of the situation should be encouraging for all. Such huge volumes of trading show that demand for and participation in crypto markets is increasing.

Though the end of SegWit2X may have brought some BCH buyers out of the woodwork, it appears that many of the market movers are less convinced. Nevertheless, the substantial price bump has brought the altcoin into the spotlight, increasing adoption. For example, Ami Ben David Co-Founder of SPiCE VC said:

“We clearly see stronger support for Bitcoin as the original and decentralized coin, but at the same time, Bitcoin Cash has suddenly arrived in terms of adoption levels to the size of Ethereum, to the point where we have decided to add Bitcoin Cash as an investment option on our token sale and we expect other token issuers to follow suit.”

Rising tide

This week’s spike in the price of Bitcoin was met with equally impressive rallies in a number of altcoins, with Dash, Ethereum and Litecoin soaring to all-time highs as well. This is highly unusual, as Bitcoin’s bull runs usually suck money out of altcoins and causes a slump in their prices. The concurrent growth of Bitcoin and altcoins is a good sign: it indicates that outside money is flowing into digital currency.

Source: Coin Telegraph




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Bitclub Network allows you to buy mining shares with daily payouts

CCG Mining now offers open end contracts. Bitcoin, Ethereum, Zcash, Litecoin and others

Cointracking keeps track of all your coins automatically. Many exchanges and wallets supported