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There are plenty of people who argue that the bear market that has plagued Bitcoin throughout this year is nothing more than a temporary problem–John McAfee blamed Bitcoin’s downfall on “artificial” pressures; others claim that this decline is nothing more than a maturation, a normal part of the lifecycle of any asset.
However, perhaps it’s not a coincidence that most of the people who see the light at the end of Bitcoin’s tunnel are widely known to be hodlers themselves–and of course, it’s foolish to buy medicine from a sick man.
For as many analysts and other figures in the financial community that claim that Bitcoin is going back up, there are just as many who see Bitcoin heading down with no sign of substantial recovery. Could there be any validity to what these Bitcoin bears are claiming? The Mining Calamity
Perhaps one of the biggest threats to Bitcoin is the failure of the industry that runs the network.
New Bitcoins are created through a process called “mining”, wherein expensive computers solve incredibly complex mathematical equations in order to confirm transactions and add them to the blockchain (a public ledger.
) In exchange for their work as miners, these computers (and their owners) get rewarded with Bitcoins. If Bitcoin goes to zero, does that mean shorters get infinite BTC? 🤔 https://t.
co/LQwmsoQe7L
— Francis Pouliot 🐂₿ (@francispouliot_) November 20, 2018
The odds were calculated based on price data from all three currencies collected between the years 2011 and 2018.
“On one hand it sounds small, on the other hand, it is still orders of magnitude larger than the probability that [a traditional currency] is going to become worthless,” Tsyvinski told CNBC. “So you can take the glass half full or the glass half empty.” Bitcoin Just Isn’t a Currency
VanGuard Economist Joe Davis said all the way back in May that there’s “decent” chance that the price of Bitcoin is headed to zero. He argued that Bitcoin simply doesn’t meet the criteria required for it to be an actual currency; he said it was nothing more than a dubious instrument of exchange and that is high levels of volatility do not make it into a reliable store of value.
Davis said that as such, he does not believe that Bitcoin or other cryptocurrencies represent any serious threat to banks or traditional financial systems.
However, Davis does believe that banks will eventually adopt the usage of their own digital currencies. Market Manipulation Could Lead to Destruction
Chairman of Roubini Macro Associates Nouriel Roubini, also known as “Dr. Doom” for his bearish economic outlooks, tweeted his beliefs that Bitcoin is headed into oblivion all the way back in February of this year. Bitcoin crashing now to $6,100.
And the US Hearing on cryptoscams is only a day away. So a $5K handle looks highly likely unless the crypto-manipulation gangs starts pumping and dumping or wash trading again.
So HODL nuts: be ready for a 75% loss from recent peaks.
— Nouriel Roubini (@Nouriel) February 6, 2018 As expected Bitcoin now crashes below $6000. Now the $5K handle is reached.
And the US Congressional Hearing on Crypto-Scams is still a day away. HODL nuts will hold their melting Bitcoins all the way down to ZERO while scammers and whales dump and run…
— Nouriel Roubini (@Nouriel) February 6, 2018
Roubini cited market manipulation as one of the factors that will ultimately lead to Bitcoin’s demise, asking if the CFTC and SEC would be looking into the wash trading that he alleged was happening in the Bitcoin markets.
As Bitcoin crashes to a $5K handle the wash traders move rapidly into action to prop it up…price and quantity action now clearly consistent with criminal wash trades…will the SEC and CFTC start looking into these criminal activities?
— Nouriel Roubini (@Nouriel) February 6, 2018
There has been a widespread belief that the Bitcoin markets are subject to widespread market manipulation from the very beginning–”whales,” or individuals that hold a lot of BTC, have been accused of throwing their weight around in order to profit off of panic.
While there is no definite proof that this has ever taken place, there is still reason to believe that it might have happened. The Future is Unclear
There’s no telling what the reality of Bitcoin will be in 2019. These perspectives seem grim, but Finance Magnates reported just yesterday on individuals who believe that Bitcoin’s best days are yet to come.
If you’re not a professional analyst, though, the old adage might provide a source of wisdom here: hope for the best, but expect the worst.
What are your thoughts on where Bitcoin is headed next year? Leave a comment below. We’d love to hear from you.
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