Lifestyle

Don't Feel Bad That You Never Invested in Bitcoin

Sometimes ignorance really is bliss
IMAGE Getty
Comments

Bitcoin: that mysterious internet fad, sorry, investment opportunity that appeals to people who got really into preaching about Herbalife on Facebook back in 2012, but have now pivoted to becoming millennial financial experts, has suffered one of its biggest drops in value yet.

Meaning it's not the end of the world that you never bothered to buy into the hype.

After almost halving in value in a matter of weeks, a leading team of economists (no, not you, John from Facebook), believe it still has further to fall.

Capital Economics, an independent financial analysis and consultancy firm, told The Guardian that claims that bitcoin and its imitators could replace established currencies were "rubbish".

Despite sitting at a more-than-healthy P422,371.26, the value of one Bitcoin has fallen from a peak of P963,515.65 in December, caused by a general worry from regulators about its volatility amid fears that Cryptocurrency could be banned.

Part of the problem, Capital says, is the surge in value was not being driven by any strategy, but more a simple belief that they will continue to rise in value.

Tulip mania, anyone?

"Most people are buying Bitcoin, not because of a belief in its future as a global currency, but because they expect it to rise in value."

"Accordingly, it has all the hallmarks of a classic speculative bubble, which we expect to burst. Triggers for the bubble to burst could be a further crackdown by regulators or a major hacking attempt.

"When it will fully burst is anyone’s guess and prices could yet rise again, before they fall further ahead," they added.

Even if Bitcoin is banned or made obsolete in the future, Capital acknowledges that the blockchain technology behind cryptocurrency will still have a lasting impact.

"Not only could it transform the financial systemby removing the need for banks to act as intermediariesbut it could have applications elsewhere, for example, in maintaining tax and hospital records. A particularly interesting element is smart contracts, which could transform supply chains and trade finance."

ADVERTISEMENT - CONTINUE READING BELOW

Nice.

This story originally appeared on Esquire.co.uk.

* Minor edits have been made by the Esquiremag.ph editors.

Comments
View More Articles About:
About The Author
Finlay Renwick
Finlay Renwick is the Digital Editorial Assistant at Esquire.co.uk
View Other Articles From Finlay
Comments
Latest Feed
 
Share
I was promised dick. I am underwhelmed, just like every other time this has happened.
 
Share
Pilipinas Shell Foundation, Inc. has been working in Palawan since its mother corporation launched the Malampaya Project in 2000.
 
Share
 
Share
So you can give gifts that aren't just material objects.
 
Share
Giant collars! Cape-slash-parkas! Yellow! The actor isn't afraid of anything.
 
Share
Yep, there actually is a good commute shoe.
 
Share
Study says getting a new PC is cheaper than constantly repairing old ones.
 
Share
The Franco-Swiss watchmaker is part of a star-studded gang of 25 collaborators.
Load More Articles
Connect With Us