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Amid Crypto-Chaos, Morgan Stanley Warns 'True Value Of Bitcoin Could Be Zero'
by Tyler Durden
Dec 24, 2017 2:50 PM
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After bouncing aggressively yesterday, cryptocurrencies are sliding again today with Bitcoin testing back below $13,000, Bitcoin Cash below $3,000, and
Ethereum under $700 once again.
Bitcoin is back below $13000...though downside volume is notably lower than on Friday...
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12/25/2017 Amid Crypto-Chaos, Morgan Stanley Warns 'True Value Of Bitcoin Could Be Zero' | Zero Hedge
There is still no obvious catalyst for the moves aside from a growing anxiety that HODLers may be losing faith...
Mark Constantine
@vexmark
30 217 1,011
Charlie Shrem, a founding member of Bitcoin Foundation, believes that the market has already seen similar price movements and there is no reason to
panic...
Charlie Shrem
@CharlieShrem
Others are arguing that crypto markets are broken... (via CoinTelegraph)
Cryptocurrencies have captured international attention this year. Although trading currency is nothing new, it certainly feels like an ancient concept being
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Cryptocurrencies have captured international attention this year. Although trading currency is nothing new, it certainly feels like an ancient concept being
renewed by novel technology. The rapid price increase of almost all digital tokens, which is most noticeable in Bitcoin’s 1,600 percent improvement this
year, and their surprising integration into mainstream investment markets through futures contracts, has made crypto trading an appealing pursuit for
many investors. In fact, with a total market cap of more than $400 bln, crypto trading is becoming one of the hottest investment opportunities available.
Unfortunately, many traders are finding that the technological advances or even basic trading needs found on traditional investment exchanges
are utterly lacking on crypto exchanges. This could be a big problem.
While cryptocurrencies have never been more popular or more in-demand, the exchanges that are intended to facilitate the buying and selling of
cryptocurrencies are subpar and inefficient. In their current state, they are the tangible manifestation of people’s worst fears about cryptocurrencies. In
general, they lack equity between exchanges, they utilize embarrassingly outdated technology, and they are infused with bad actors.
It’s clear that cryptocurrencies are going to be a significant part of the financial landscape going forward, but these problems need a solution.
Perhaps by better understanding how crypto markets are broken, we can begin to find answers for their shortcomings, so that they can thrive.
Read more here...
Morgan Stanley, on the other hand, takes a deeper dive into the 'value' side of Bitcoin.
Analyst James Faucette and his team sent a research note to clients this week suggesting that the real value of bitcoin might be $0.
The report (titled "Bitcoin decrypted") did not give a price target for bitcoin, but in a section titled "Attempts to Value Bitcoin," he concluded, stating the
somewhat obvious:
"If nobody accepts the technology for payment then the value would be 0," Faucette suggested.
Faucette backed his argument with this chart of online retailers who accept bitcoin, titled "Virtually no acceptance, and shrinking":
We humbly suggest that, in the same argument, if no one was forced to transact their oil requirements in USDollars, what would the world's reserve
currency be worth?
Faucette described why it is so hard to ascribe value to the cryptocurrency. It's not like a currency, it's not like gold, and it has had difficulty scaling.
Can Bitcoin be valued like a currency?
No. There is no interest rate associated with Bitcoin.
Like digital gold?
Maybe. Does not have any intrinsic use like gold has in electronics or jewelry. But investors appear to be ascribing some value to it.
Is it a payment network?
Yes but it is tough to scale and does not charge a transaction fee.
Bitcoin average daily trading volume of $3bn (last 30 days) vs $5.4 trillion in the FX market.
Est. <$300mn in daily purchase volume vs. $17bn for Visa.
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12/25/2017 Amid Crypto-Chaos, Morgan Stanley Warns 'True Value Of Bitcoin Could Be Zero' | Zero Hedge
However, despite Morgan Stanley's admittedly self-defending perspective, we leave it to John McAfee to remind cryptospace players what's important to
remember...
John McAfee
@officialmcafee
OK Everyone ... stop panicking about the across the board dip in
cryptocurrencies. It's Christmas for f-ck sake. The costliest time
of the year. People are cashing in to buy presents which no-one
wants or ever uses but pretends to be thankful for. After Xmas -
big boom.
9:52 PM - Dec 22, 2017
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When the bankers in control allowed "futures", the writing was clearly on the wall and it was game over. Now, you will hear them start trolling the
internet saying "it went up too fast so naturally was going to correct", denying outright the manipulation and control they impose on everything
financial.
Mcafee says people are cashing out to buy presents. lmao.... Does this guy even remotely understand the nature of investing and speculating?
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Some facts, since I know you love them so - GDAX pumper high for BCrash 9,500
Current price - 2,838
Say what you want about Bitcoin, for me it is the best trading asset I have seen for many years. That's how real markets used to behave, not
move in an algorithmic fashion like most stawks now adays.
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12/25/2017 Amid Crypto-Chaos, Morgan Stanley Warns 'True Value Of Bitcoin Could Be Zero' | Zero Hedge
>There is still no obvious catalyst for the moves aside from a growing anxiety that HODLers may be losing faith...
Full retard. Investors are taking profits for Christmas/end of year positioning. If this was about a loss of faith, it would be crashing by 90%.
Unregulatable crypto will be hammered and attacked in probably 2-3 waves of attack..
Media will attack crypto in synchronized waves in concert with central bank insider sell off
Good Crypto will be the ones under their control aka forkable an inflatable- Ethereum..
http://bullmarkets.co/the-stock-markets-overbought-momentum-is-a-long-te...
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