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| comment | | "parent_author":"",<br>"parent_permlink":"cryptocurrency",<br>"author":"davidlanz",<br>"permlink":"81-billion-allianz-says-bitcoin-is-a-bubble-search-engine-results-show-otherwise",<br>"title":"$81 Billion Allianz Says Bitcoin is a Bubble,<br> Search Engine Results Show Otherwise",<br>"body":"<p><img src=\"https:\/\/248qms3nhmvl15d4ne1i4pxl-wpengine.netdna-ssl.com\/wp-content\/uploads\/2018\/03\/pineapple-funds-5-mil-bitcoin-donation-boosts-medicine-foundation_featured-760x400.jpg\"><\/p><div class=\"entry-content\">\n<div class=\"post-thumbnail\">\n<a href=\"https:\/\/www.ccn.com\/81-billion-allianz-says-bitcoin-bubble-search-engine-results-show-otherwise\/\" title=\"$81 Billion Allianz Says Bitcoin is a Bubble,<br> Search Engine Results Show Otherwise\">\n<img alt=\"\" class=\"attachment-large-thumb size-large-thumb wp-post-image\" height=\"400\" src=\"https:\/\/248qms3nhmvl15d4ne1i4pxl-wpengine.netdna-ssl.com\/wp-content\/uploads\/2018\/03\/pineapple-funds-5-mil-bitcoin-donation-boosts-medicine-foundation_featured-760x400.jpg\" width=\"760\"\/> <\/a>\n<\/div>\n<div class=\"content-ads\">\n<div class=\"widget text-12 widget_text\"><h6 class=\"widget-title font-weight-bold\">Advertisement<\/h6> <div class=\"textwidget\"><p><\/p>\n<div id=\"div-gpt-ad-1513203250972-0\" style=\"height:90px; width:728px;\">\n\n<\/div>\n<\/div>\n<\/div> <\/div>\n<em><a href=\"https:\/\/hacked.com\">Get Trading Recommendations and Read Analysis on Hacked.com for just $39 per month.<\/a><\/em><br\/>\n<p><span style=\"font-weight: 400;\">On March 14,<br> $81 billion investment firm Allianz stated in a report released by the firm\u2019s global economics and strategy head Stefan Hofrichter that the cryptocurrency market,<br> regardless of its liquidity,<br> is a bubble.<\/span><\/p>\n<h2><b>Intrinsic Value Again<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Hofrichter stated that cryptocurrencies like bitcoin lack intrinsic value,<br> and that the base value of cryptocurrencies is zero.<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">\u201cIn our view,<br> its intrinsic value must be zero. A bitcoin is a claim on nobody \u2013 in contrast to,<br> for instance,<br> sovereign bonds,<br> equities or paper money \u2013 and it does not generate any income stream.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bitcoin\u2019s demise would have few spillover effects on the \u2018real world,<br>\u2019 since the market for this cryptocurrency is still quite small in size. As a result,<br> we believe that the risks to financial stability stemming from bitcoin are negligible \u2014 at least as of today,<br>\u201d <\/span><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-03-14\/bitcoin-is-worthless-bubble-may-pop-soon-allianz-global-says?utm_campaign=socialflow-organic&utm_medium=social&utm_content=business&cmpid=socialflow-twitter-business&utm_source=twitter\">said Hofrichter.<\/a><\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">However,<br> as stated many times by respected analysts and bankers like Goldman Sachs CEO Lloyd Blankfein,<br> the concept of intrinsic value is flawed,<br> and base value in assets simply does not exist. For instance,<br> stocks,<br> commodities,<br> and fiat currencies also do not have intrinsic value,<br> as their value solely depend on the supply and demand sought out by the free market.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Emphasizing that multi-billion dollar conglomerates rely on digital trust and thus do not have intrinsic value,<br> Fundstrat analyst Tom Lee <\/span><a href=\"https:\/\/www.cnbc.com\/2018\/01\/16\/skeptics-say-bitcoin-has-no-value-heres-why-theyre-wrong.html\"><span style=\"font-weight: 400;\">explained:<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIf you ask a baby boomer,<br> \u2018Can you justify the value of anything that\u2019s a digital business?\u2019 they probably don\u2019t accept that Facebook,<br> Google,<br> Netflix,<br> Amazon,<br> Apple,<br> these are the largest companies in the S&P 500 and they\u2019re primarily digital businesses built almost purely on digital trust.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The value of cryptocurrencies like bitcoin derive from their security,<br> decentralized protocol,<br> and the distributed network of nodes,<br> miners,<br> and users that sustain the network. The computing power of the bitcoin network has increased to a point in which no single entity or organization can ever match it,<br> disallowing or eliminating the possibility of double spending,<br> or taking advantage of the system to produce more digital currencies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">More importantly,<br> unlike the stock market and other private markets that are open exclusively to accredited investors and brokers,<br> the cryptocurrency market is public. Any investor can trade or invest in cryptocurrencies. As such,<br> bitcoin and other major cryptocurrencies have become more liquid than any other stock or asset in the global stock market.<\/span><\/p>\n<h2><b>Search Engine Results<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Box Mining,<br> a renowned cryptocurrency analyst,<br> revealed that the number of Google search engine searches for the keyword \u201cbitcoin bubble\u201d has actually decreased since late 2017.<\/span><\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">At least nobody is worried about the Bitcoin Bubble <a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&ref_src=twsrc%5Etfw\">#Bitcoin<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/cryptocurrencies?src=hash&ref_src=twsrc%5Etfw\">#cryptocurrencies<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/BitcoinBubble?src=hash&ref_src=twsrc%5Etfw\">#BitcoinBubble<\/a>. <a href=\"https:\/\/t.co\/d0lEbwfctS\">pic.twitter.com\/d0lEbwfctS<\/a><\/p>\n<p>\u2014 boxmining (@boxmining) <a href=\"https:\/\/twitter.com\/boxmining\/status\/973885714696847361?ref_src=twsrc%5Etfw\">March 14,<br> 2018<\/a><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">The major correction that occured in the cryptocurrency market throughout January and February has shown that due to its liquidity,<br> long-term bubbles within the cryptocurrency market do not form. Short-term bubbles implode with minor and major corrections,<br> as the value of major cryptocurrencies drop 50 to 70 percent in some periods.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Hence,<br> to describe the entire market as a bubble by disregarding investors within it,<br> institutional and retail traders with billions of dollars in capital,<br> and the $13.5 billion daily trading volume of the market is highly incorrect.<\/span><\/p>\n<b>Follow us on <a href=\"https:\/\/telegram.me\/ccncom\">Telegram<\/a>.<\/b><br\/>\n<b>Advertisement<\/b><br>\n<div id=\"div-gpt-ad-1513203355638-0\" style=\"height:90px; width:728px;\">\n<script>\r\ngoogletag.cmd.push(function() googletag.display('div-gpt-ad-1513203355638-0'); );\r\n<br<h2>Follow @davidlanz for real-time crypto news!<h2>",<br>"json_metadata":" \"app\": \"piston-lib\/0.5.7\" " |
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