[2017-10-19] Black Monday 30th Anniversary Sees Bitcoin Beating Bubble Fears

[cybersofts]

Caveat Emptor? Black Monday 30th Anniversary Sees Bitcoin Beating Bubble Fears



Thursday marks the thirtieth anniversary of the infamous Black Monday on Wall Street, but for the crypto industry it’s “just Monday.”

Oct. 19, 1986 still strikes fear into the hearts of die-hard bankers as the date of the single biggest one-day stock market collapse in history.

‘Suffering’ 23 percent losses, legacy finance quickly understood what happens when automated trading goes wrong. For Bitcoin and altcoin markets, however, 23 percent is an almost daily occurrence for one investor or another.

As serial investor Alex Tapscott noted this week, any Monday could be a far worse Black Monday for Bitcoin, but the panic is comparatively negligible.

    "30th anniversary of Black Monday, when markets dropped 23% in a day. In #crypto we just call that Monday https://t.co/vqYlF11aey
    — Alexander Tapscott (@alextapscott) October 19, 2017

The multiple major crash episodes Bitcoin has experienced since 2013 have seen near 50 percent losses, while investors become more and more resilient, and rebounds more and more stable.

“The first lesson I learned was that these things happen,” one trader at the time, Nicholas Taleb, told Bloomberg in a commemorative article.

“The second lesson I learned was that when they happen, what you make everywhere else disappears. Unless you’re hedged for events like Black Monday, whatever alpha you think you’re going to get, you’re not going to get.”

While traders had seen “signs” prior to the crash, Bitcoin investors are still headstrong despite the multiple warnings from traditional finance that the cryptocurrency is in a bubble.

Opinions on the phenomenon are split down the middle, with steadfast advocacy facing off against those who deem Bitcoin more unreliable than Tulip Mania.





Source: https://cointelegraph.com/news/caveat-emptor-black-monday-30th-anniversary-sees-bitcoin-beating-bubble-fears

[Spaffin]

A sharp drop in the exchange rate by 23 percent on the stock exchanges, which was on the black Monday of 1986, the current crypto currency is going through quite often, and all of it is already beginning to get used to its such falls and take-offs. Very strong volatility has been laid down for the time being in the nature of crypto-currencies. This feature of her very much influences her nervous holders, but so far nothing can be done about it. In Japan, for example, they said that the coin they created would be devoid of such volatility, but let's see how it will be in practice. On the other hand, volatility affects well the constant revival in the trading of crypto-exchange exchanges.

[iamTom123]

‘Suffering’ 23 percent losses, legacy finance quickly understood what happens when automated trading goes wrong. For Bitcoin and altcoin markets, however, 23 percent is an almost daily occurrence for one investor or another.

That summarized it all. Just 23% drop 30 years ago and it send the whole Wall Street into a panic they had never seen in decades. I am sure that back then traders and people in general were still so conservative. Right now, the market is already different. 30 years ago, the internet was just a baby and was not yet so pervasive as we are seeing now. We are already in a different society though I would say that fundamentals remain the same.

Bitcoin's volatility changed the perspective of the market all because the coin can go down as fast as it can yet in just a matter some hours can go up again as if things are just so fine. this has became one of the main features of Bitcoin so far. People who are in Bitcoin know the trading history of the coin so they feel that there is nothing to be afraid of here. This is becoming the meaning of the word 'resiliency' and we know that Bitcoin has it.  

[aso118]

Black Monday was specific to stocks. we should be using different benchmarks. Like what happened after Mt. Gox crashed. And only 40% decline in price should qualify as a crash. 20% is nothing when you look at Bitcoins volatility.

[Karartma1]

Bitcoin has no real competitor in terms of price movements. We had our Black Days of huge dumps but we are also experiencing a series of amazing bull runs. Give it time: this bull is very young

[Kemarit]

Black Monday was specific to stocks. we should be using different benchmarks. Like what happened after Mt. Gox crashed. And only 40% decline in price should qualify as a crash. 20% is nothing when you look at Bitcoins volatility.

Yeah, a 20% crashed in bitcoin will just be "normal". Stocks are different though, people back then panics and don't know what's going on, causing it to crash. However, there is a reason for bitcoin to crash, just like the recent the China shenigans causing the price to stumple from almost $6000 to $2800 however, it can recovered in less than a month. I don't know how stocks though in terms of recovery. So I would say that although you gonna be nervous and anxious about the recent bitcoin crash it didn't deter some of the investors to go back and restore our full confidence on the market resulting to our recovery. And as if nothing happens and we march forward to new ATH.

[ALT67890]

Someone even tried to paint “black Monday” as a bitcoin future. Seems arrogantly stating how the past will not teach every investors for what happened. I’ve seen much panic in bitcoin for a weekly basis for new investors and those been knowned bitcoin for sometimes understand that it was just a normal thing.