Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content
Sign in to follow this  
bostonangler

Crypto-Linked Stocks Sink With Bitcoin on South Korean Warning

Recommended Posts

The rout in bitcoin is also taking down stocks with ties to cryptocurrencies.

Pareteum Corp. fell as much as 25 percent as of 10:16 a.m. in New York, while Digital Power Corp. and LongFin Corp. each slipped more than 6 percent after South Korea’s government said it wanted to clamp down on speculation, potentially by shutting down some exchanges. The warning sent bitcoin below $14,000, leaving it down 26 percent from last week’s record.

Overstock.com Inc., On Track Innovations Ltd., and  Riot Blockchain Inc. also traded lower Thursday, in relatively light volume during a holiday-shortened week.

The crypto space has been on a wild ride this month, with the digital token bitcoin soaring to record highs before a dramatic selloff last week. The assets rebounded earlier this week, before resuming their slide lower in a test for investor enthusiasm in the asset class.

More from Bloomberg.com: Bitcoin Tumbles Over Exchange-Closure Fears

Such volatility isn’t new for bitcoin or its proxies. The digital coin has seen many peaks and valleys over the course of its history. This year, it’s climbed 1,400 percent and once reached more than $19,500. Related assets have largely moved in tandem with the cryptocurrency. Shares of Riot Blockchain and Digital Power, while taking a hit today, are still up 627 percent and 450 percent this year, respectively.

Share this post


Link to post
Share on other sites

EXMO affiliate program

By Cynthia Kim and Dahee Kim

SEOUL (Reuters) - South Korea's government said on Thursday it plans to ban cryptocurrency trading, sending bitcoin prices plummeting and throwing the virtual coin market into turmoil as the nation's police and tax authorities raided local exchanges on alleged tax evasion.

The clampdown in South Korea, a crucial source of global demand for cryptocurrency, came as policymakers around the world struggled to regulate an asset whose value has skyrocketed over the last year.

Justice minister Park Sang-ki said the government was preparing a bill to ban trading of the virtual currency on domestic exchanges.

"There are great concerns regarding virtual currencies and the justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges," Park told a news conference, according to the ministry's press office.

After the market's sharp reaction to the announcement, the nation's Presidential office hours later said a ban on the country's virtual coin exchanges had not yet been finalised while it was one of the measures being considered.

A press official at the justice ministry said the proposed ban on cryptocurrency trading was announced after "enough discussion" with other government agencies, including the nation's finance ministry and financial regulators.

Once a bill is drafted, legislation for an outright ban of virtual coin trading will require a majority vote of the total 297 members of the National Assembly, a process that could take months or even years.

The government's tough stance triggered a selloff of the cryptocurrency on both local and offshore exchanges.

The local price of bitcoin plunged as much as 21 percent in midday trade to 18.3 million won ($17,064.53) after the minister's comments. It still trades at around a 30 percent premium compared to other countries.

Bitcoin (BTC=BTSP) was down more than 10 percent on the Luxembourg-based Bitstamp at $13,199, after earlier dropping as low as $13,120, its weakest since Jan. 2.

South Korea's cryptocurrency-related shares were also hammered. Vidente <121800.KQ> and Omnitel <057680.KQ>, which are stakeholders of Bithumb, skidded by the daily trading limit of 30 percent each.

Once enforced, South Korea's ban "will make trading difficult here, but not impossible," said Mun Chong-hyun, chief analyst at EST Security.

"Keen traders, especially hackers, will find it tough to cash out their gains from virtual coin investments in Korea but they can go overseas, for example Japan," Mun said.

Park Nok-sun, a cryptocurrency analyst at NH Investment & Securities, said the herd behavior in South Korea's virtual coin market has raised concerns.

Indeed, bitcoin's (BTC=BTSP) 1,500 percent surge last year has stoked huge demand for cryptocurency in South Korea, drawing college students to housewives and sparking worries of a gambling addiction.

"Some officials are pushing for stronger and stronger regulations because they only see more (investors) jumping in, not out," Park said.

By Thursday afternoon, the Justice Ministry's announcement had prompted more than 55,000 South Koreans to join a petition asking the presidential Blue House to halt the crackdown on the virtual currency, making the Blue House website intermittently unavailable due to heavy traffic, the website showed.

 

REGULATORY CONUNDRUM

There are more than a dozen cryptocurrency exchanges in South Korea, according to Korea Blockchain Industry Association.

The proliferation of the virtual currency and the accompanying trading frenzy have raised eyebrows among regulators globally, though many central banks have refrained from supervising cryptocurrencies themselves.

The news of South Korea's proposed ban came as authorities tightened their grip on some cryptocurrency exchanges.

The nation's largest cryptocurrency exchanges such as Coinone and Bithumb were raided by police and tax agencies this week for alleged tax evasion. The raids follow moves by the finance ministry to identify ways to tax the market that has become as big as the nation's small-cap Kosdaq index in terms of daily trading volume.

Some investors appeared to have taken preemptive action.

"I have already cashed most of mine (virtual coins) as I was aware that something was coming up in a couple of days," said Eoh Kyung-hoon, a 23-year old investor.

 

Bitcoin sank on Monday after website CoinMarketCap removed prices from South Korean exchanges, because coins were trading at a premium of about 30 percent in Asia's fourth-largest economy. That created confusion and triggered a broad selloff among investors.

An official at Coinone told Reuters that a few officials from the National Tax Service raided the company's office this week. The official, who spoke on condition of anonymity, said that Coinone was cooperating with the investigation.

Bithumb, the second largest virtual currency operator in South Korea, was also raided by the tax authorities on Wednesday.

"We were asked by the tax officials to disclose paperwork," an official at Bithumb said, requesting anonymity due to the sensitivity of the issue.

The nation's tax office and police declined to confirm whether they raided the local exchanges.

South Korean financial authorities had previously said they are inspecting six local banks that offer virtual currency accounts to institutions, amid concerns the increasing use of such assets could lead to a surge in crime.

($1 = 1,069.9600 won)

Share this post


Link to post
Share on other sites

By Jemima Kelly

LONDON (Reuters) - Bitcoin tumbled 18 percent on Tuesday to a four-week trough close to $11,000, after reports that a ban on trading of cryptocurrencies in South Korea was still an option drove fears grew of a wider regulatory crackdown.

Bitcoin's slide triggered a massive selloff across the broader cryptocurrency market, with biggest rival Ethereum down 23 percent on the day, according to trade website Coinmarketcap, and the next-biggest, Ripple, plunging 33 percent.

South Korean news website Yonhap reported that Finance Minister Kim Dong-yeon had told a local radio station that the government would be coming up with a set of measures to clamp down on the "irrational" cryptocurrency investment craze.

South Korea had said on Monday that its plans to ban virtual coin exchanges had not yet been finalized, as government agencies were still in talks to decide how to regulate the market.

Bitcoin slid on the latest news, trading as low as $11,191.59 on the Luxembourg-based Bitstamp exchange, down 18 percent on the day, for a short period putting the digital currency on track for its biggest one-day fall in three years.

"It's mainly been regulatory issues which are haunting the cryptocurrency, with news around South Korea's further crackdown on trading the driver today," said Think Markets chief strategist Naeem Aslam, who holds what he described as "substantial" amounts of bitcoin, Ethereum and Ripple.

"But we maintain our stance. We do not think that the complete banning of cryptocurrencies is possible," he said.

Cryptocurrencies enjoyed a bumper year in 2017 as mainstream investors entered the market and as an explosion in so-called initial coin offerings (ICOs) - digital token-based fundraising rounds - drove demand for bitcoin and Ethereum, the second-biggest digital unit.

The latest tumble leaves bitcoin down more than 40 percent from the record high around $20,000 it hit in mid-December, wiping about $130 billion off its "market cap" - the unit price multiplied by the total number of bitcoins that have been released into the market.

The news from South Korea came as it emerged a senior Chinese central banker had said authorities should ban centralized trading of virtual currencies as well as individuals and businesses that provide related services, according to an internal memo from a government meeting seen by Reuters.

Bloomberg reported on Monday that Chinese authorities plan to block domestic access to Chinese and offshore cryptocurrency platforms that allow centralized trading.

"(It) seems like it's uncertainty spooking the markets,...with regulations unclear," said Charles Hayter, founder of data analysis website Cryptocompare. "(Traders) are taking profits on the increased risk scenarios going forward."

A director at Germany's central bank said on Monday that any attempt to regulate cryptocurrencies must be on a global scale as national or regional rules would be hard to enforce on a virtual, borderless community.

By 1000 GMT bitcoin was trading down 16 percent on the day at around $11,500 on Bitstamp.

Share this post


Link to post
Share on other sites

Cryptocurrency company BitConnect said it’s closing its lending and exchange platform after receiving cease and desist letters from Texas and North Carolina.

The move has helped spark a big selloff in the virtual currency linked to the company, BitConnect Coin, also known as BCC. It was recently down 97% to $6.09, according to CoinMarketCap.com data. BCC had traded as high as $322 on Tuesday.

U.K.-based BitConnect said on its website that the cease and desist letters from the two states “have become a hindrance for the legal continuation of the platform.”

BCC’s market capitalization had dived to about $50 million after nearing $3 billion in late December. The market cap is shown in the above chart’s blue line, while the green line represents BCC’s price in dollars.

BitConnect has been soliciting investors for cryptocurrency-based programs that the company claims will deliver annualized returns of 100% or more, said securities regulators for Texas in a news release.

BitConnect was not registered as a dealer or salesman of securities in North Carolina and had failed to disclose material facts when offering investments in the Tar Heel State, that state’s regulators said.

 

BitConnect also said “continuous bad press has made community members uneasy and created a lack of confidence.” In addition, several denial of service attacks on BitConnect ‘s platform “have created more panic inside the community,” the company said.

BCC’s dive follows a broad selloff Tuesday for bitcoin BTCUSD, -10.81%  , the world’s No.1 cryptocurrency, and other virtual currencies.

Read more: Two lesser-known cryptocurrencies find buyers as investors unload the rest

And see: Bitcoin bloodbath highlights these defensive cryptocurrency strategies

The selling has been blamed in part on worries about increased regulatory scrutiny in South Korea and other countries. Crypto fans are pushing back, with a petition in South Korea against a crackdown scoring more than 200,000 signatures, a level that reportedly merits a government response.

Early Wednesday, bitcoin was losing a fight to stabilize, as it fell below the $10,000 level and traded far off its mid-December peak above $19,000.

Share this post


Link to post
Share on other sites

Citi sees bitcoin potentially halving in value again

 

NEW YORK (Reuters) - Bitcoin may lose 50 percent of its value from its current level as fears over regulatory clamp-downs have spurred a rout among cryptocurrencies this week, Citi analysts said on Wednesday.

The world's biggest and best known digital currency, which fell below $10,000 on Wednesday, could fall into a range of $5,605 to $5,673 based on technical factors. This possible move "looks very likely to be very speedy," the analysts wrote in a research note

Share this post


Link to post
Share on other sites

Bitcoin pushed above $11,000 on Thursday, as the most popular digital currency attempted to stabilize after a week that has so far wiped more around 18% off spot prices, but analysts are unsure how much of a comeback is in store.

Bitcoin’s spot price BTCUSD, +1.50% rose nearly 7% to $11,887.19, after getting knocked down on Wednesday to its lowest level since late November below $10,000, according to prices on CoinDesk. Bitcoin now is well off a low of $10,663.95 it touched earlier on Thursday.

The first bitcoin futures contract for January US:XBTF8 —trading on Cboe Global Markets Inc. CBOE, +0.56% —expired on Wednesday, settling at a price of $11,055, according to CoinDesk. The March futures contract XBTG8, +8.69%  traded at $11,860. January futures BTCF8, +6.58%  on the CME Group Inc. CME, -0.49%  traded at $11,790, up 7.7%.

Across other cryptocurrencies, Ether coins on the Ethereum blockchain were up 5.8% to $1,074.04, retaking a level about $1,000, according to CoinDesk.

Concerns that Korea and China will clamp down hard on cryptocurrency trading has sparked a recent rout for bitcoin and other digital currencies. South Korea’s head of the Financial Services Commission told parliament on Thursday that the government may close “all local virtual currency exchanges or just the ones who have been violating the law,” according to a Reuters report.

Read: Why bitcoin’s ugly rout could get worse before it gets better

 

Meanwhile, South Korea’s central bank governor, Lee Ju-yeol, said at a news conference on Thursday that cryptocurrencies weren’t “legal” currencies, and weren’t presently being used in such a manner.

Dead-cat bounce?

Analysts have been trying to map out the next moves for bitcoin and its rivals against a background of potentially more regulation from South Korea, China and other countries.

“Finding a fair value in cryptocurrencies is an impossible mission, as animal spirits will remain the key driver,” said Hussein Sayed, chief market strategist at FXTM, in a note to clients.

“Most people who were buying bitcoin and other cryptocurrencies most recently, are not using them for transactions, but holding them in the expectation of profiting from the endless rising price. Whether the animal spirits have already released their grip, remains to be seen and this cannot be ascertained from a two-day slump,” he said.

“The bitcoin price is enormously oversold when you look at it from a technical perspective,” said Naeem Aslam, chief market analyst at Think Markets, in a note. “Fear of missing out on the opportunity among investors is kicking in, and this could be the very reason that we are experiencing a dead cat bounce, if not a bottom for the Bitcoin price.”

Read: Ignore the ‘blockchain gimmicks’ say the men behind the new blockchain ETFs

“In order for us to have a clear confirmation that the downtrend is no longer a threat, the price needs to break the downward trend line and move above the $13K,” he added.

Share this post


Link to post
Share on other sites

Bubble? What bubble? Strategist sees huge year ahead for these 4 cryptos

Regardless of Thursday’s bounce, the recent carnage in digital currencies has tested the resolve of many in the crypto community. But one Wall Street strategist, a longtime bitcoin bull, is not only unfazed by the plunge, he’s gotten even more optimistic.

Fundstrat’s Tom Lee, in his latest take, predicts that bitcoin will hit $25,000 this year, which is four years ahead of schedule. Furthermore, his model shows it will reach $125,000 by 2022. This after bitcoin just lost half its value from its December high.

Read: Bitcoin steadies after multiday rout.

“We expect bitcoin’s major low to be $9,000, and we would be aggressive buyers around that level,” Lee said. “We view this $9,000 as the biggest buying opportunity in 2018.” At last check, bitcoin BTCUSD, +2.05%  was approaching $12,000.

Bitcoin, of course, wasn’t the only crypto getting slammed. The entire group saw hundreds of billions of dollars in market cap disappear in a matter of days. But amid that carnage, Lee sees lots of potential, particularly in three bitcoin alternatives.

He said he sees Ethereum rising to $1,900 by the end of the year, up from about $1,000 on Thursday. He also likes Ethereum Classic, which he expects to double to $60 from $30. His predicts his third pick, Neo, will jump to $225 from $148.

Share this post


Link to post
Share on other sites

Major cryptocurrencies rebounded sharply after a steep mid-week selloff on concerns about regulatory crackdowns in South Korea. After briefly dipping to near $9,000 this week, bitcoin traded near $12,000 on Friday as investors turned their attention away from Asian government crackdowns and focused on some new cryptocurrency-related options for U.S. investors.

This week's selloff was triggered by reports that South Korea is considering following China's lead and shutting down all domestic cryptocurrency exchanges. South Korea accounts for up to 12 percent of all global bitcoin trading, according to CryptoCompare.

[See: 7 of the Best Stocks to Buy for 2018.]

Despite concerns in Asia, U.S. investors now have some new ways to invest in cryptocurrency and blockchain technology.

First, pair of new blockchain-focused exchange-traded funds hit the market this week. The Reality Shares Nasdaq NexGen Economy ETF (ticker: BLCN) and the Amplify Transformational Data Sharing ETF (BLOK) began trading on Wednesday. The ETFs invest in companies focused on blockchain technology, the underlying decentralized public ledger system responsible for the unique security of cryptocurrency transactions.

In addition to the two new ETFs, British cryptocurrency wallet Blockchain officially launched in the U.S. on Thursday. Blockchain could potentially rival Coinbase as the leading service to buy and sell cryptocurrencies directly in the U.S. market.

The new digital wallet and new ETF options are helping to open up the U.S. cryptocurrency market for Americans who have previously had limited investment options. The U.S. Securities and Exchange Comission has yet to approve a bitcoin ETF listing on a major exchange due to concerns about investor safety. The Bitcoin Investment Trust (GBTC) trades on the lightly regulated over-the-counter market.

[Read: What's the Best Bitcoin Wallet?]

"The regulatory fears have been a big hit to sentiment, but in my view it's temporary," Brian Kelly, CEO of BKCM says, according to CNBC. "There is a handoff taking place from Asian investors who are being prohibited from investing to U.S. and Japanese investors, who are just beginning to discover the asset class."

Volatility is nothing new to cryptocurrency investors, but the general trend has been negative in recent weeks. In the past month, the Bitcoin Investment Trust is down more than 30 percent.

Share this post


Link to post
Share on other sites

 

Bitcoin was supposed to kill Western Union — that hasn't happened

 

 

Bitcoin was envisioned as a “peer-to-peer electronic cash system” in Satoshi Nakamoto’s original 2008 white paper, and one of its biggest appeals was frictionless international payments. Bitcoin promised shorter transfer times and lower transfer fees than you’d get at Western Union or another money transfer business, the de facto option for sending money abroad.

But 10 years later, Western Union has been unfazed and unaffected by bitcoin.

In fact, profits at the world’s largest money transfer company are up: for Q3 2017 Western Union reported a 13% year-over-year increase in earnings per share, beating analyst expectations.

96257e4cd942bdabef0b5402f16b9e22
 
People walk past a Western Union in Times Square in New York, Nov. 30, 2011. REUTERS/Eduardo Munoz
More

Considering that Western Union has been around since 1851, it may look like an old-guard, outdated company ripe for disruption, rooted in brick and mortar. It still has 550,000 physical locations globally (a staggering figure, but remember that many of these are small counters inside a grocery store).

But the company has quietly gone more digital, and specifically more mobile. Western Union integrated with new mobile pay options like Apple Pay, Facebook Messenger, and Tencent’s WeChat Pay. And as Fortune reported in November, more than 60% of Western Union’s digital transactions now originate from a mobile device. Its rails handle $150 billion in transactions per year.

None of those transactions involve cryptocurrencies; Western Union doesn’t allow them.

In December, the company made a little bit of noise in the bitcoin world when a Reddit user posted the message that Western Union gave in blocking a wire payment sent to the bitcoin exchange Kraken: “Please be advised that we have determined your transaction is related to cryptocurrencies. This is one of the purposes of trading that we do not allow as per our internal regulations, which is why the transaction cannot be processed and the funds will be returned back to your bank account in full.” (Western Union declined to comment for this story beyond confirming that it does not allow cryptocurrency transactions.)

This wasn’t the first time that the money transfer giant has targeted cryptocurrency. In February 2017, Western Union posted a video interview with its CTO David Thompson to its corporate blog, called “Is bitcoin a viable currency?”

Surprise: Western Union’s opinion is “no.”

Thompson’s description of bitcoin, in which he compares it to a bag of corn, raised some eyebrows in the cryptocurrency community: “Think of [cryptocurrencies] as a bag of corn, or silver—a commodity that you can exchange for a service or a product,” Thompson said. “Cryptocurrencies confuse a lot of people because they aren’t fiat currencies… So for example, if you want to go get a car wash, I don’t think your car wash is going to accept a commodity like a bag of corn. They want fiat currency.”

Bitcoin believers might retort: Of course your car wash doesn’t accept bitcoin yet. And maybe it never will, but that’s not the point anymore. The potential use cases of bitcoin have changed so much since its inception that “digital currency” or “cryptocurrency” may no longer be an appropriate moniker. Think of bitcoin and other coins (ether, litecoin, etc.) instead as “digital assets” or “digital tokens.”

It doesn’t help bitcoin’s case that as activity on the bitcoin blockchain has increased, transaction times have slowed and fees have gone up.

39752d70988e732d35861e6e0fa2a739
 
Western Union stock performance over the past 2 years.

 

Would Western Union ever change its stance on cryptocurrencies? Thompson answered that clearly: “We as a company would not be operating in cryptocurrency until it became regulated, and there would be a need for regulation over cross-border movement or a cross-border compliance structure.” It is a common misconception that bitcoin is completely unregulated, but it is certainly not regulated to the extent Western Union or other mainstream financial companies would like before touching it.

Coinbase cofounder Fred Ehrsam offered CoinDesk his opinion on Western Union and bitcoin back in 2013: “They have innovator’s dilemma. It’s hard for them to move on bitcoin because they have all this massive infrastructure invested, with physical locations and agents everywhere.”

On the other hand, Western Union stock popped last week on a rumor, still unconfirmed by Western Union, that the company plans to adopt Ripple’s blockchain payment network and use its XRP token. (XRP ended 2017 up 32,300% for the year.)

Thompson, in his video interview, also offers this take: “In our current ecosystem, say the United States, there’s a very limited use for cryptocurrencies.” For now, he isn’t wrong: people are buying these coins as speculative investments, to hold in the hopes that the price goes up. It has become a buying mania, but in all the excitement, the uses of the technology behind each coin are getting lost. (That said, it is not at all the case that “bitcoin is dead,” as the CEO of TransferWise, another money transfer company, claimed to Yahoo Finance in 2016.)

The general thinking in the financial world, for now, is that bitcoin poses no big threat to traditional money transfer companies. That could still change—remember that blockchain, the decentralized ledger technology that underpins bitcoin and has Wall Street so excited, is still extremely new and nascent—but for now, Western Union isn’

Share this post


Link to post
Share on other sites

Goldman Sachs is warning its wealthiest clients that there’s no doubt that the rise in bitcoin’s price (BTC) has pushed it into bubble territory.

The firm’s Private Wealth Management division touched upon the cryptocurrency craze in a 108-page note titled “(Un)Steady as She Goes,” an annual outlook that’s sent to the firm’s private wealth management clients. These clients are folks who have at least $10 million in investable assets.

13df44fd697e1600040c9f35a074c8af
 
Floridapfe | Moment | Getty Images.
More

The meteoric rise of cryptocurrencies has “moved beyond bubble levels,” Goldman’s Sharmin Mossavar-Rahmani and Brett Nelson write. They note cryptocurrencies already dwarf both the dot-com bubble and the notorious Dutch “Tulipmania,” a period where tulip bulbs became a prized commodity between 1634 and 1637 and prices went haywire.

8aa4e4a596cf5ff16860a7785bc8f20b
 
The price moves in bitcoin and ether dwarf the dot-com and tulip bubbles. (Source: Goldman Sachs Investment Strategy Group)
More

“The mania surrounding cryptocurrencies is probably even better illustrated by the price surges seen in companies that announce some type of affiliation with blockchain technology or cryptocurrencies,” Goldman wrote.

A handful of obscure companies have suddenly pivoted to blockchain and crypto, sending their share prices higher. Goldman pointed to two recent examples, The Crypto Company and Long Blockchain Corp.

The Crypto Company went public after purchasing shares of Croe, Inc., an early-stage sports bra company. From September 27 until December 18, when the SEC temporarily halted trading of its shares, the stock price had surged 17,324%. Then, there’s Long Blockchain (LBCC), which had previously been the Long Island Ice Tea Corp. Late last year, the company said it was “shifting its primary corporate focus towards the exploration of and investment in opportunities that leverage the benefits of blockchain technology.” That company has also seen its share price jump.

“The price moves in cryptocurrencies and in the share price of companies with new cryptocurrency or blockchain affiliations remind us of a comment by a Dutch historian, Theodorus Schrevelius. He wrote, in 1648, 11 years after the collapse of tulip prices, that ‘our descendants doubtless will laugh at the human insanity of our Age, that in our times, the tulip flowers have been so revered,’” Goldman wrote.

To be sure, Goldman acknowledged some benefits from cryptocurrencies, but also some serious drawbacks.

“We think the concept of a digital currency that leverages blockchain technology is viable given the benefits it could provide: ease of execution globally, lower transaction costs, reduction of corruption since all transactions could be traced, safety of ownership, and so on. But bitcoin does not provide any of these key advantages. Quite the contrary. Not only is there no ease of execution, but settlement often takes as many as 10 days. In late 2017, the price discrepancies among 17 US exchanges for one bitcoin amounted to $4,156, or about a 31% difference between the high and low prices. Transaction costs have skyrocketed, and frequent hacking has wiped out entire wallets and exchanges of their bitcoin holdings.”

What’s more, Goldman does not see cryptocurrencies maintaining their current value in the long-run. They also don’t see the US dollar replaced as the global reserve currency by crypto.

And if cryptocurrencies were to collapse, they would not have a significant impact on the broader economy or financial markets.

“We should also add that we do not believe a collapse in bitcoin will have major contagion effects on the global economy or financial markets,” Goldman wrote. “At the peak of the dot-com bubble in March 2000, the combined market capitalization of Nasdaq and S&P 500 information technology stocks was 101% of US GDP and 31% of world GDP. The aggregate market capitalization of cryptocurrencies is 3.2% of US GDP and 0.8% of world GDP.”

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

×

Important Information

By using this site, you agree to our Terms of Use.