Bitcoin bust prediction

But it is unlikely to pose a risk to the global economy like other bubbles, according to bitcoin expert Adrian Lee, a senior lecturer in finance at the University of Technology in Sydney. That's because, for one thing, there's not as much money tied up in bitcoin as there was during the dot-com bubble, Mr Lee says, pointing out that while there is billions in bitcoin, there were trillions spent during the dot-com bubble.

What also makes this unique is that it is unlikely people are borrowing to invest in bitcoin, according to RMIT professor of economics Jason Potts. Our experts said that seemed unlikely. It's still a relatively small number of people with money invested — roughly similar to the amount of people using email in , Mr Potts said.

So we're still very much in the early adoption phase. And Mr Potts said there had not been many retail investors involved. That would limit the fallout to the wider economy in a worst-case scenario. But then again the exchanges don't require much overhead to run it, so if it fell they'd still be OK," Mr Lee said.

Some people who bought at the wrong time would be angry, other people who have been waiting to buy would be happy," he said. Those who have invested in associated entities, including mining infrastructure and ICO-based businesses, would also lose out, Mr Lee said. If it were as a result of central banks cracking down on bitcoin then you would expect the value of other cryptocurrencies to also fall.

But if it was because of irrational exuberance, then only those cryptocurrencies that have experienced similarly sharp rises in their value would drop.

The bitcoin expert told the ABC that the recent surge in value is not a 'bubble' but a "price discovery". Besides, Mr Potts says there's been what could be described as "crashes" in bitcoin every few months.

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Fun times indeed, but she's still had it better than Our Mary did. Australia has no policy designating English as the official language, but an explicit "English first" policy for signage would treat speakers of every other language as second-class citizens,.

So we're still very much in the early adoption phase. And Mr Potts said there had not been many retail investors involved. That would limit the fallout to the wider economy in a worst-case scenario.

But then again the exchanges don't require much overhead to run it, so if it fell they'd still be OK," Mr Lee said. Some people who bought at the wrong time would be angry, other people who have been waiting to buy would be happy," he said. Those who have invested in associated entities, including mining infrastructure and ICO-based businesses, would also lose out, Mr Lee said.

If it were as a result of central banks cracking down on bitcoin then you would expect the value of other cryptocurrencies to also fall. But if it was because of irrational exuberance, then only those cryptocurrencies that have experienced similarly sharp rises in their value would drop. The bitcoin expert told the ABC that the recent surge in value is not a 'bubble' but a "price discovery". Besides, Mr Potts says there's been what could be described as "crashes" in bitcoin every few months.

It has grown [apart from ] every other year so over in the long-term it's been a solidly performing asset," he said. First posted December 01, If you have inside knowledge of a topic in the news, contact the ABC. ABC teams share the story behind the story and insights into the making of digital, TV and radio content.

Read about our editorial guiding principles and the enforceable standard our journalists follow. Meghan Markle's about to say "I do" to a life of weirdly-shaped headgear, constant surveillance, and creepy commentary about whether she is fulfilling her function as an heir oven. Fun times indeed, but she's still had it better than Our Mary did. Australia has no policy designating English as the official language, but an explicit "English first" policy for signage would treat speakers of every other language as second-class citizens,.

In a worrying sign for the region, the number of attacks has been on the rise, driven in part by the return of fighters from the frontlines of Islamic State's battles in the Middle East. Houses are going up at such a rapid rate in one part of Sydney that local infrastructure has no way of keeping up unless all future residential proposals are suspended, the State Government says. The Australian's James Kirby says the speculation on the currency itself is little better than 'betting'.

The digital currency making millionaires. Bitcoin value slides as China slaps fundraising ban on booming cryptocurrencies. All cryptocurrency movements are based on domain specific media and conversations between traders. Bitcoin traders, it can be said, are now akin to the jolly colonists selling stocks under buttonwood tree. That is all coming and at that point the market will harden itself against panics and booms. Until then we enjoy rises and dips and volatility that puts most bitcoin dilettantes off their lunch.

Ultimately new and old users are testing the limits of a system that, for a decade, has been untested. The futures market will be a big driver in growth and bust over the next few months as institutional investors begin using the currency. Yes, to those who are betting big on BTC.

Again, I cannot tell you whether to buy or sell but the common expectation is that bitcoin raises to a set point and then fluctuates between a high and a low until the next run up.