PRESS RELEASE: The Bitcoin Bubble has Burst, says Money Metals Exchange’s President

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According to Stefan Gleason , the greatest asset bubble of all time has burst. The Money Metal Exchange president believes that Bitcoin and the entire crypto markets do not resemble the stock market. Unlike the digital currency, the stock market has entered a correction while cryptos have entered a full-blown collapse.

He expressed,

One of the greatest asset bubbles of all time appears to have just burst. It’s not the stock market. Despite recent downside volatility amidst bubble-like valuations, so far stocks have merely entered a correction. Cryptocurrencies, on the other hand, have entered into a full-blown meltdown.

Bitcoin will go down the memory lane for its unbelievable rise from zero to highs of $19,783 on December 17, 2017, and its subsequent fall now hovering around $4,000. In the second half of November 2018, Bitcoin prices plunged from around $6,400 to a 14-month low of around $3,500. Any investor who dived into the Bitcoin world at over $19,000 now faces an 80% loss.

BTC is the yardstick for the entire crypto market. Thus, Ethereum, Bitcoin Cash, Ripple, and many others are also nursing staggering losses. The uncertainties surrounding this budding market means that the cryptos may or may not bounce back and bitcoin may or may not reach new heights in the future. Since all the leading crypto coins have no tangible back up, their value is majorly speculative.

However, the utility of digital currency is quite real. Blockchain technology has enabled individuals to execute online transactions without involving the banking system.

Money Metals Exchange is undisputedly the most capable company in the entire US that allow precious metals customers to pay using cryptos. This mode of payment enables users to avoid fees on credit card transactions and international cash transfers.

Solution to Politically Disfavoured Businesses

It is important to get alternative financial tools for various individuals since some credit card processors and banks are discriminately denying financial services to customers based on their political views.

One prominent example is Gab , an alternative social networking site that was denied some services for allowing controversial views to get published by its members.

Andrew Torba, Gab founder, posted a message to his followers informing them that his company was denied services by several banks.

He added that the company would incorporate BitPay soonest possible since they were already banned by Coinbase. They also plan to incorporate PO Box address for their users to mail checks and cash.

The need for a dependable alternative payment system has grown with the increasing threat of ideologically motivated financial de-platforming by conventional financial institutions, banks, and payment processors.

However, as stated by Torba, major bitcoin exchanges like Coinbase have joined politically influenced bank intermediaries in blacklisting individuals that they do not like.

Additionally, they are collecting PIN and private information from customers and handing it over to the IRS . The only way for Bitcoin users to guarantee privacy is to avoid transactions on this blockchain ledger.

Bitcoin faces many challenges of excessive energy consumption, slow transactions, theft, and loss of digital key, fraud, and imminent government crackdowns.

Moreover, lack of any tangible basis of valuation is a primary fundamental problem for bitcoin and all other unbacked cryptos. The solution to this challenge is to incorporate real assets on the blockchain although a considerable degree of counterparty risk would endure.

Overstock CEO Patrick Byrne believes that tokenizing publicly traded companies would decentralize Wall Street ending share price manipulation done by a few large institutional traders.

Gold-Backed Cryptos are still Risky

Bugs are crawling towards the crypto coins backed by the physical precious metals. Many legal and technical challenges are still looming and a few scammers are likely to hide in this mix too.

However, optimists believe that it will be possible to safely use precious metals on the blockchain in future without involving dollars, the brokerage, or banking system to buy real assets and shares of stock.

Digital gold could become an undisputed leader in storage of value surpassing dollars or bitcoins. This growth would channel huge traffic for the metal’s demand.

That is the bullish side for blockchain and its probable incorporation with real money. On the other side, it would turn bearish if central banks and governments consider crypto space as a war on cash.

Recently, IMF chair, Christine Lagarde , stated that if central banks develop stablecoins, they could satisfy most of the public policy goals and also offer privacy in payments.

Although global monetary planners may purport to focus on the general population’s protection, inclusion, security, and privacy, they want to suffocate all competition to fiat currencies.

They also aim to enhance a move to an all-digital economy where private transactions are impossible and paper bills and coins get eliminated.

The ‘Fedcoin’ was considered recently although Federal Reserve officials refute that they plan to issue the new currency. The alternative currency space is extremely dynamic and rapidly evolving.

It is nearly impossible to determine the impact of technological innovations, government interventions and market iterations on the next major cryptocurrency trend.

POLL: What’s your stake?

Bitcoin (BTC) price on December 31, 2018 will be:

Over $4500

Less than $4500

87 votes · 87 answers

Vote Results

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