This article is within the scope of WikiProject Cryptocurrency, a collaborative effort to improve the coverage of cryptocurrency on Wikipedia. If you would like to participate, please visit the project page, where you can join the discussion and see a list of open tasks.CryptocurrencyWikipedia:WikiProject CryptocurrencyTemplate:WikiProject CryptocurrencyWikiProject Cryptocurrency articles
This article is within the scope of WikiProject Economics, a collaborative effort to improve the coverage of Economics on Wikipedia. If you would like to participate, please visit the project page, where you can join the discussion and see a list of open tasks.EconomicsWikipedia:WikiProject EconomicsTemplate:WikiProject EconomicsEconomics articles
Editors who violate any listed restrictions may be blocked by any uninvolved administrator, even on a first offense.
An editor must be aware before they can be sanctioned.
With respect to any reverting restrictions:
Edits made solely to enforce any clearly established consensus are exempt from all edit-warring restrictions. In order to be considered "clearly established" the consensus must be proven by prior talk-page discussion.
Edits made which remove or otherwise change any material placed by clearly established consensus, without first obtaining consensus to do so, may be treated in the same manner as clear vandalism.
Clear vandalism of any origin may be reverted without restriction.
Reverts of edits made by anonymous (IP) editors that are not vandalism are exempt from the 1RR but are subject to the usual rules on edit warring. If you are in doubt, contact an administrator for assistance.
If you are unsure if your edit is appropriate, discuss it here on this talk page first. Remember: When in doubt, don't revert!
I have just modified 2 external links on Economics of bitcoin. Please take a moment to review my edit. If you have any questions, or need the bot to ignore the links, or the page altogether, please visit this simple FaQ for additional information. I made the following changes:
When you have finished reviewing my changes, you may follow the instructions on the template below to fix any issues with the URLs.
This message was posted before February 2018. After February 2018, "External links modified" talk page sections are no longer generated or monitored by InternetArchiveBot. No special action is required regarding these talk page notices, other than regular verification using the archive tool instructions below. Editors have permission to delete these "External links modified" talk page sections if they want to de-clutter talk pages, but see the RfC before doing mass systematic removals. This message is updated dynamically through the template {{source check}} (last update: 5 June 2024).
If you have discovered URLs which were erroneously considered dead by the bot, you can report them with this tool.
If you found an error with any archives or the URLs themselves, you can fix them with this tool.
The below source makes the claim that the creation of unbacked Tether coins at Bitfinex is causing the meteoric rise in the price of Bitcoin, because of the unfettered ability to sell the one and use the proceeds to buy the other (in practice being accomplished as a direct currency pair exchange). The goal of any counterfeiter is to exchange their bogus currency for a legitimate one as efficiently as possible, and in one author's opinion Bitfinex is knowingly facilitating this. https://seekingalpha.com/article/4129543-bitcoin-one-way-go-true — Preceding unsigned comment added by 73.211.91.161 (talk) 21:27, 4 December 2017 (UTC)[reply]
Coffeezilla has indepth videos exposing Tether and it's bubble effect on the crypto market. Expoing Tether-Bitcoin' Bigges SecretTether is Hiding Something Basically, the fact everyone with crypto in their exchange hasn't yet bank run all their money out is he only reason Bitfinex/Tether haven't collapsed. Lots of forensic accounting involved, but Bitfinex and Tether are owned by the same people and funds from one are used to cover for the other and vice versa. 2601:244:0:E790:DC1D:327E:53B1:ACE6 (talk) 15:16, 7 January 2022 (UTC)[reply]
Merchants/businesses are tough to keep track of as ones that formerly accepted it, stealthily stop accepting it without press releases. Nonprofits are easier to keep track of. Either their donate page has crypto dono options or not.
Nonprofits that explicitly no longer accept crypto:
Mozilla Foundation a vague not at this time statement that leaves it vague if they may accept it again proof and yet another not accepting crypto statement, but this time blaming the ecoloical/environmental impact of crypto for the reason to not accept donations proof 2 Note: There was a one week window between these two statements, so this is why they are re-freezing aka re-banning crypto donations.
Greenpeace stealthily dropped crypto without a notice of doing so (no proof here, will try to find it later)
Note: Plus many more was added due to Giving Block being added to the donate crypto pages of TPI, UWW, and STC. The TPI proof now directly goes to the donate crypto page now. The GB box in the link has dozen of crypto to choose from, too many to list here. 2601:244:0:E790:475:F16E:BBDA:6DCE (talk) 15:46, 28 December 2023 (UTC)[reply]
There's currently more detailed info about the economics of Bitcoin-as-a-bubble at the general Cryptocurrency bubble page than here, which seems backwards. See also Talk: Cryptocurrency bubble#POV forking. I suggest moving most of that material here, leaving a brief summary paragraph in its place. Under § Speculative bubble in this article, I propose adding something like the following text:
The investors Warren Buffett and George Soros have respectively characterized it as a "mirage"[1] and a "bubble";[2] while the business executives Jack Ma and Jamie Dimon have called it a "bubble"[3] and a "fraud",[4] respectively.
Views of economists
As early as 2014, Nobel laureate Robert J. Shiller stated that bitcoin "exhibited many of the characteristics of a speculative bubble";[5] in 2017, Shiller wrote that bitcoin was the best current example of a speculative bubble.[6]
Economist John Quiggin in 2013 said "bitcoins are the most demonstrably valueless financial asset ever created".[7]
Researchers Neil Gandal, JT Hamrick, Tyler Moore, and Tali Oberman claimed that in late 2013, price manipulation by one person likely caused a price spike from USD$150 to more than USD$1000.[8]
Nobel laureate Joseph Stiglitz in 2017 said "It’s a bubble that’s going to give a lot of people a lot of exciting times as it rides up and then goes down." He emphasized its use by criminals, its lack of a socially useful purpose, and said that it should be outlawed.[9]
Nobel laureate Paul Krugman wrote in 2018 that bitcoin is "a bubble wrapped in techno-mysticism inside a cocoon of libertarian ideology". He criticized it as a very slow and expensive means of payment, used mostly to buy blackmarket goods, without a "tether to reality".[10]
Nobel laureate Richard Thaler emphasizes the irrationality in the bitcoin market that has led to the bubble, demonstrating the irrationality with the example of firms that have added the word "blockchain" to their names which have then had large increases in their stock price. The extremely high volatility in bitcoin's price also is due to irrationality according to Thaler.[11]
Professor Nouriel Roubini of New York University has called Bitcoin the "mother of all bubbles". He believes that a revolution in financial technology (fintech) is now happening, but that it does not include the flawed blockchain used by bitcoin and other cryptocurrencies. Bitcoin has failed, according to Roubini, as a unit of account, a means of payment, and as a store of value, the three attributes needed by any successful currency. "Scammers, swindlers, charlatans, and carnival barkers (all conflicted insiders) have tapped into clueless retail investors’ FOMO (“fear of missing out”), and taken them for a ride."[13][14]
Views of central bank officials
Early claims that bitcoin was a bubble focused on the lack of any intrinsic value of bitcoin. These claims include that of former Federal Reserve Chairman Alan Greenspan in 2013. He stated "You really have to stretch your imagination to infer what the intrinsic value of Bitcoin is. I haven't been able to do it."[15]
In 2017 Greenspan compared bitcoin to the Continental dollar, which ultimately collapsed. He said "Humans buy all sorts of things that aren't worth anything. People gamble in casinos when the odds are against them. It has never stopped anybody."[16]
Former Fed Chair Ben Bernanke (in 2015) and outgoing Fed Chair Janet Yellen (in 2017) have both expressed concerns about the stability of bitcoin's price and its lack of use as a medium of transactions.[17][18]
Agustin Carstens, head of the Bank of International Settlements, has said that bitcoin is a speculative bubble and that the general public should be protected from its effects. It is "a combination of a bubble, a Ponzi scheme and an environmental disaster".[19]
David Andolfatto, a vice president at the Federal Reserve Bank of St. Louis, stated, "Is bitcoin a bubble? Yes, if bubble is defined as a liquidity premium." According to Andolfatto, the price of bitcoin "consists purely of a bubble".[20]
Comparisons of bitcoin to the tulip mania of seventeenth-century Holland have been made by the vice-president of the European Central Bank, Vítor Constâncio[21] and by former president of the Dutch Central Bank, Nout Wellink.[22] In 2013, Wellink remarked, "This is worse than the tulip mania [...] At least then you got a tulip [at the end], now you get nothing."[22]
American investor Warren Buffett warned investors about bitcoin in 2014, "Stay away from it. It's a mirage, basically."[1] He repeated the warning in 2018 calling bitcoin "probably rat poison squared". He believes that bitcoin is a non-productive asset. "When you're buying nonproductive assets, all you're counting on is the next person is going to pay you more because they're even more excited about another next person coming along."[25]
Buffett's close associate Charlie Munger is even more direct in his distain. Trading cryptocurrencies is "just dementia" according to Munger. Bitcoin is "worthless" and a "turd".[26]
John Bogle, the founder of The Vanguard Group, is also very direct "Avoid bitcoin like the plague. Did I make myself clear? .... There is nothing to support bitcoin except the hope that you will sell it to someone for more than you paid for it."[27]
George Soros, answering an audience question after a speech in Davos, Switzerland in 2018, said that cryptocurrencies are not a store of value but are an economic bubble. Nevertheless, they may not crash due to the rising influence of dictators trying to "build a nest egg abroad".[2]
James Chanos, known as the "dean of the short sellers", believes that bitcoin and other cryptocurrencies are a mania and useful only for tax avoidance or otherwise hiding income from the government. Bitcoin "is simply a security speculation game masquerading as a technological breakthrough in monetary policy".[28]
Two lead software developers of bitcoin, Gavin Andresen[29] and Mike Hearn,[30] have warned that bubbles may occur.
On 13 September 2017, Jamie Dimon referred to bitcoin to as a "fraud",[31] comparing it to pyramid schemes, and stated that JPMorgan Chase would fire employees trading while the company released a report critical of the cryptocurrency.[32] However, in a January 2018 interview Jamie Dimon voiced regrets about his earlier Bitcoin remarks, and noted "The blockchain is real, You can have cryptodollars in yen and stuff like that. ICOs ... you got to look at everyone individually."[33][4]Alibaba chairman Jack Ma has said, "There is no bubble for blockchain, but there's a bitcoin bubble."[3]
^Barford, Vanessa (13 December 2013). "Bitcoin: Price v hype". bbc.com. BBC. Archived from the original on 19 December 2013. {{cite news}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
The sentence "The investors Warren Buffett and George Soros have respectively characterized it as a "mirage"[1] and a "bubble";[2] while the business executives Jack Ma and Jamie Dimon have called it a "bubble"[3] and a "fraud",[4] respectively." violates WP:NPOV. How? While it is true that Jamie Dimon called bitcoin a "fraud", the problems are:
The text of the section shows that Dimon's claim was considered a market manipulation by other sources.
