Bitcoin bubble 'just about to burst,' major money manager says

[bbc.reporter]

We have been laughing at fund managers and analysts from Wall Street, but are they really trying to spread FUD or are they telling us the truth that we cannot accept?

Also, has the bubble not already burst or is Allianz's Stefan Hofrichter trying to tell us that it might fall some more?



"It appears to us that bitcoin mania is a textbook-like bubble – and one that is probably just about to burst," the asset manager's head of global economics and strategy, Stefan Hofrichter, said in an online post distributed Friday. "As a currency and asset class, bitcoin has potentially fatal flaws – which is why we believe it's a matter of when, not if, the bitcoin bubble will pop."

Bitcoin has fallen sharply since leaping 2,000 percent in the 12 months through December to a record high above $19,000. The cryptocurrency was trading near $8,700 on Wednesday, according to CoinDesk's bitcoin price index.

The cryptocurrency "ticks all of the boxes that we consider to be essential criteria of any asset bubble," including a fivefold surge in trading volumes over the last five years, lack of financial regulation and the launch of related financial instruments such as bitcoin futures, the Allianz report said.

Read in full https://www.cnbc.com/2018/03/14/bitcoin-bubble-just-about-to-burst-major-money-manager-says.html

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[sjefdeklerk]

What do you want to know exactly? The guy's right of course in everything he says. Way too many flaws in bitcoin to ever become a success. 14 transactions per second, that's just never going to work.

[motoprose]

I have seen this sort of behavior about it being the worst bubble ever created and I was just rolling my eyes at this speculation of cryptocurrency over all.
If it has survived this long then I do not believe it can be defined as just a bubble.
The dot com era was what? Around 4-5 years?
Bitcoin has been around double that amount of time in existence.
So it is really hard to believe it can just vanish in a flash that is what a bubble really is(value wiped out completely) insisting in what it is to the economy it has been created so far.

[bbc.reporter]

What do you want to know exactly? The guy's right of course in everything he says. Way too many flaws in bitcoin to ever become a success. 14 transactions per second, that's just never going to work.

Knowing where the bottom will be would be nice hehehe.

But what flaws? How can bitcoin be decentralized and be fast at the same time? If any developer has found a solution, it would have been implemented already.

Also I disagree, bitcoin has been working well enough before all the craziness of Wall Street arrived.

[sjefdeklerk]

But what flaws? How can bitcoin be decentralized and be fast at the same time? If any developer has found a solution, it would have been implemented already.

But that's exactly what the author is saying. Bitcoin has problems in the core of its system, the blockchain, it won't scale so it can never work.

[gentlemand]

I'm finding his angle a little silly. Of course last year was a bubble and it is indeed bursting.

He nominates a five year time frame for that bubble and for much of that five years Bitcoin was thrashing around at the bottom of the toilet in the emphatic reverse of a bubble.

Anyway, nothing new here beyond that. The same words have been said a million times now by a million different 'experts'.

[pooya87]

price may fall more, it may even fall big time and much lower but i still wouldn't call it a bubble burst. the bubble bursted long time ago and it was over. now it is just pure manipulation and dumping that is crashing the price.

hopefully we get to a bottom that eventually ends all the bubble talk and the rise after that is more solid, so we may find a silver lining in this after all.

[YuginKadoya]

price may fall more, it may even fall big time and much lower but i still wouldn't call it a bubble burst. the bubble bursted long time ago and it was over. now it is just pure manipulation and dumping that is crashing the price.

hopefully we get to a bottom that eventually ends all the bubble talk and the rise after that is more solid, so we may find a silver lining in this after all.

Yup! I Agree with you, And I really think that the CNBC news were just doing their work but the information is really some kind of a FUD so that manipulators would do what they want and people would think that this can be a bubble, I really wish the bottom can be This $7000 USD and don't drop bellow there and please don't panic to much because this is what manipulators wants they want us to sell our bitcoin so they can buy on a cheaper level, This can really happens sometimes and if they can get what they want they will be ready for the big leap again and profit for it.

[Idrisu]

We have been laughing at fund managers and analysts from Wall Street, but are they really trying to spread FUD or are they telling us the truth that we cannot accept?

Also, has the bubble not already burst or is Allianz's Stefan Hofrichter trying to tell us that it might fall some more?



"It appears to us that bitcoin mania is a textbook-like bubble – and one that is probably just about to burst," the asset manager's head of global economics and strategy, Stefan Hofrichter, said in an online post distributed Friday. "As a currency and asset class, bitcoin has potentially fatal flaws – which is why we believe it's a matter of when, not if, the bitcoin bubble will pop."

Bitcoin has fallen sharply since leaping 2,000 percent in the 12 months through December to a record high above $19,000. The cryptocurrency was trading near $8,700 on Wednesday, according to CoinDesk's bitcoin price index.

The cryptocurrency "ticks all of the boxes that we consider to be essential criteria of any asset bubble," including a fivefold surge in trading volumes over the last five years, lack of financial regulation and the launch of related financial instruments such as bitcoin futures, the Allianz report said.

Read in full https://www.cnbc.com/2018/03/14/bitcoin-bubble-just-about-to-burst-major-money-manager-says.html

I think he is trying to tell us that it will fall more and we should expect more declining than progress. Bitcoin is at the state of bearish market and that do not mean the bubble has busted. I think any moment from next month the coast will be clear and we would know the directions of the price. The technology behind bitcoin and blockchain technology is very strong that we can not actually said bitcoin is going to come to an end!

[maurobiasolo]

I would really like to know how all those experts invest their own money. Apparently, they are negative on everything they don't know

[DeathAngel]

I would really like to know how all those experts invest their own money. Apparently, they are negative on everything they don't know

Pretty much. Don’t understand something or regret missing the boat then trash talk it.

[Lucius]

In a moment like this it is very easy to be negative,we see that from many "experts" who are trying show the situation much worse than it really is.They are also negative last year,but they were wrong.Now they are speaks the same story again,what's going to happen this year only time will show.

After ATH and correction BTC is in the situation where it is subject to manipulation,who have much BTC and money control the market and move price up&down, and in that process they successfully exploited every bad or good news.

Based on the last year most of us expected that price will continue to go up,but maybe this year will be completely different.For those who have been for years in world of crypto this situation is nothing strange,and the year has just begun,who knows what can happen in month or two.

[blockman]

but are they really trying to spread FUD or are they telling us the truth that we cannot accept?

It's more of a FUD and this has been said for so many times and we all have itching our ears with these FUDs.

I would really like to know how all those experts invest their own money. Apparently, they are negative on everything they don't know

I doubt it they don't know bitcoin, they knew it already and they know how to get a good entry point while missing the bottom. And this is how they do it by saying that bitcoin is bla bla bla.

[TERA2]

He means the bubble has a whole breaking, not just our usual retracement. Think on a large-frame logarithmic scale regressing multiple orders of magnitude.

[mobnepal]

The cryptocurrency "ticks all of the boxes that we consider to be essential criteria of any asset bubble," including a fivefold surge in trading volumes over the last five years, lack of financial regulation and the launch of related financial instruments such as bitcoin futures, the Allianz report said.[/i]

- Fivefold surge in trading volumes : It shows people are interested to buy or trade bitcoin including some big whales
- Lack of financial regulation : Financially regulated hedge fund and banks are known for some of the big market crash. LOL
- Launch of bitcoin futures : They are just for whales to play with and don't have direct impact on market price of bitcoin. Market price and future price of bitcoin can have different price at same time.

Bitcoin network is strong, secure but yes price can fluctuate. Even if many whales will exist new support will always be there for bitcoin, many people are looking to make an entry whenever price get dumps.

[Jacques_Bittard]

Financial managers are sometimes forgetting that with crypto, they are not dealing with stocks. They are dealing with an unregulated market system that is controlled by the cartel of exchanges. The cartel owns enough coin and made up dollars, that they can make the graph move in a very unnatural way.
Bitcoin bubble doesn't burst, it just stops inflating and that already happened in December. Now is the period when the downfall is slow enough to keep the sheep exited with a constant flow of new "reversals". This can happen for several years and if governments won't crack down on tether and similar schemes, then exchanges will be able to pull another bullrun out of their arse with the help of fake money.

[babanana]

We have been laughing at fund managers and analysts from Wall Street, but are they really trying to spread FUD or are they telling us the truth that we cannot accept?

Also, has the bubble not already burst or is Allianz's Stefan Hofrichter trying to tell us that it might fall some more?



"It appears to us that bitcoin mania is a textbook-like bubble – and one that is probably just about to burst," the asset manager's head of global economics and strategy, Stefan Hofrichter, said in an online post distributed Friday. "As a currency and asset class, bitcoin has potentially fatal flaws – which is why we believe it's a matter of when, not if, the bitcoin bubble will pop."

Bitcoin has fallen sharply since leaping 2,000 percent in the 12 months through December to a record high above $19,000. The cryptocurrency was trading near $8,700 on Wednesday, according to CoinDesk's bitcoin price index.

The cryptocurrency "ticks all of the boxes that we consider to be essential criteria of any asset bubble," including a fivefold surge in trading volumes over the last five years, lack of financial regulation and the launch of related financial instruments such as bitcoin futures, the Allianz report said.

Read in full https://www.cnbc.com/2018/03/14/bitcoin-bubble-just-about-to-burst-major-money-manager-says.html

It is common and ordinary to traders to get carried by emotions when things are not going their way. It also hurt a lot when you invested a lot like you want to curse and shill everyone on your reach. My guess is, this Allianz dude got carried by emotions, invested into bitcoin and bite into the first drop last December hoping to double or triple. Now that price is declining, he got scared and sold at great loss hoping to buy back at lower price. It hurts.

Welcome to crypto's!

[gentlemand]

He means the bubble has a whole breaking, not just our usual retracement. Think on a large-frame logarithmic scale regressing multiple orders of magnitude.

I don't see how we can have our final 'fatal' bubble without mom and pop putting junior's college and Daddy's sex change fund in via their broker and then all committing suicide. This geezer is very premature in calling time on our absolutely 100% certain demise.

A lot of money that arrived is dumb. It's far from the dumbest yet. There's still a huge amount of friction to overcome.

[sjefdeklerk]

This geezer is very premature in calling time on our absolutely 100% certain demise.

On the other hand, compared to other bubbles this crypto nonsense has been going on for way too long already. So that's also reason I'm starting to think he's right and that it might be over very soon now. I think the public is starting to realize it's not working now the transactions are going down and shops are stopping to accept it.

[hase0278]

On the other hand, compared to other bubbles this crypto nonsense has been going on for way too long already. So that's also reason I'm starting to think he's right and that it might be over very soon now. I think the public is starting to realize it's not working now th transactions are going down and shops are stopping to accept it.

That is true, after all what shop would like to accept something inconvenient to pay with and has slow transaction speed? If bitcoin wants to get accepted by many stores again, it needs to improve and be able to accommodate more transactions per second and if situations doesn't improve soon, for this reason, I am also starting to think that the so called "Bitcoin bubble" by the experts will soon pop.