Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Wednesday, 20 June 11:16 (GMT -05:00)



Foreign exchange market

Bitcoin May Trigger Another Major Financial Crisis


Some experts say that Bitcoin and other cryptocurrencies may trigger another major financial crisis.
 
More and more individuals and financial institutions around the globe are getting interested in digital currencies. If they get systemically significant, they will also turn into systemic risks, especially if there are rapid chances in the financial sector. As the amount of those individuals and institutions owning cryptocurrencies reaches critical mass, this is when they become really crucial for the global financial system, especially when there is enough cryptocurrency debt and leverage.
 
As you probably know, Bitcoin has come rapidly from 1000 dollars per BTC all the way up to 20000 dollars per BTC, which clearly made all kinds of investors interested in the asset. Even big-scale players start thinking about investing in Bitcoin in the near future.
 
On the other hand, the more expensive those cryptocurrencies become, the more hostile to them the American and European governments become. Apparently, they are afraid of mass money laundering and terrorism financing.
 
At the same time, as more and more financial institutions catch this crypto-fever, the bubble inflates, thereby increasing the chances of a new major financial crisis further down the road. In particular, more and more hedge funds are now investing in Bitcoin now that the CBOE and the CME have launched their Bitcoin futures. Those derivatives opened a whole new world of investment opportunities for them.
 
Other experts say that the key problem boils down to the fact that cryptocurrencies are two far away from conventional financial markets. Which is why the chances of cryptocurrencies triggering another major financial crisis are really small at this point. However, the distance is getting shorter and shorter. So, we have to get ready for tighter integration. Indeed, cryptocurrencies will definitely be integrated in the global financial system over time.
 
There is another threat. The thing is, investing in cryptocurrencies opens an easy way for institutional investors to transition out of the conventional banking system, which may aggravate the crisis.
 

 

The biggest risk associate with cryptocurrencies is that their true value is hard to measure. Those have been highly speculative assets, with thousands of investors inflating prices for the sake of taking big profits. Amid such a market environment, its next to impossible to figure out how much those cryptocurrencies really cost, especially as there is no clear algorithm of doing that.

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

Will Bitcoin Dive Below $6000?

Publication date: 19 June 12:42 PM

Today’s Bitcoin Rate Signals Growing Risks in Banking Sector

Yesterday, the BTC exchange rate suddenly started growing, probably as a part of a recovery move against the existing downtrend. According to CoinMarketCap, the current BTC exchange rate is somewhere above 7500 USD/BTC. Over the last 24 hours, the world’s first cryptocurrency has gained some 5%, trying to recover from May’s downtrend (in case you don’t know, the coin has lost 20% since early May before starting to recover yesterday).

Publication date: 31 May 08:33 AM

Bitcoin Goes Down Before Another Rally?

The BTC exchange rate keeps on going down while being driven by a number of factors and circumstances. International experts say that the price of the world’s first and most popular cryptocurrency is currently going down just to gain some momentum later and skyrocket to new highs.

Publication date: 29 May 11:19 AM

Masterforex-V Analysts name Successful ICOs in May 2018

For those of you who don’t know, an Initial Coin Offering (ICO) is all about raising funds. To be more specific, startups sell their underlying crypto tokens in exchange for existing crypto currencies, mostly Bitcoin, Ethereum and other altcoins out there. This resembles an IPO in the stock market where investors buy a newly offered stock.

Publication date: 23 May 12:14 PM

Bitcoin Will Hit $20K, CoinShares Says

Bitcoin is really capable of getting back to the all-time high at $20K per coin. This is what founder of Coinshares Danny Masters thinks on the matter. He is not a rookie in this business. His company has been creating investment products for the cryptocurrency market and conducting blockchain-related research for years. Mr. Masters believes in the future of Bitcoin and altcoins. However, he thinks the market is yet to pass a few development stages. 

Publication date: 20 May 08:38 AM

German Stock Exchange Börse Stuttgart Welcomes Cryptocurrencies

Soon enough, maybe this fall, German stock exchange Börse Stuttgart is going to start working with cryptocurrencies. For that purpose, the exchange is expected to use its branch. Trading cryptocurrencies will be implemented through the Bison app. The expected trading turnover is around 100 billion dollars.

Publication date: 17 May 12:00 PM

Bitcoin Goes Down, Getting Closer to 8000 USD/BTC

Earlier today, the world’s first and most expensive crypto currency was going down while continuing the downtrend seen a day before. According to CoinMarketCap, the BTC exchange rate dropped below 8300USD/BTC, though it recovered a bit later on. Over the last 24 hours, the currency lost more than 5% of its dollar value. 

Publication date: 16 May 11:51 AM

Bitcoin Rallies Despite Criticism from Buffet and Gates

This trading week, Bitcoin is unlikely to conquer another major threshold located at 10000 USD/BTC. The thing is that some Bitcoin investors were cooled down by the statements made by investment guru and billionaire Warren Buffett, founder of Berkshire Hathaway, as well as by Bill Gates, founder of Microsoft and one of the richest people on the planet.

Publication date: 10 May 09:05 AM

Will Bitcoin Rate Exceed $10K This Week?

This week, the BTC exchange rate may well break above 10000 USD/BTC, most of the experts interviewed by PRIME think.

Publication date: 09 May 12:51 PM

Bitcoin Prospects Look Vague Against Altcoins

The situation in the global market of cryptocurrencies has been changing for a while. Bitcoin seems to be gradually losing its status of the world’s biggest and most popular digital currency.

Publication date: 05 May 10:53 AM