Bitch's "nightmare" expert: encrypting money in fear of exploding the financial crisis


A "night" expert warned by bitcoin that encrypted currency could explode the next financial crisis

FX168 financial newspaper (Hongkong) news bitcoin on Friday (December 22nd) staged a "panic scene", according to bitcoin trading platform Coinbase data, bitcoin price has briefly dropped below 11000 U.S. dollars, compared with the record high hit at the beginning of this week dropped 47%.

According to Coinbase data, bitcoin price rebounded to a record high above 19800 dollars last Sunday, and Thursday New York time was also close to $15500 most of the time.

But Thursday New York time midday from bitcoin decline began to intensify, according to Coinbase data, Friday morning in New York bitcoin has plummeted 30.2%, hitting the lowest 10400 dollars.

The next picture shows that bitcoin fell more than $1000 in a short hour in the early morning plate in New York, and the trend was "Crazy".

Friday New York time midday bitcoin prices rebounded to above $14600, a record high of 27% is still low.

According to the data compiled by Peng Bo, the price of bitcoin has fallen by more than 70% from the high at least three times since 2010. The buyer is prudent.

The price of bitcoins has soared this year, up by more than 1000% so far. This has triggered interest among investors and financial executives, but the sound of worry is also emerging.

Garrick Hileman, an economic historian and expert at University of Cambridge, said that if encrypted money becomes a systemic risk of the financial system, it will lead to the next financial crisis.

Hileman said that more and more financial institutions have expressed interest in comparing with the encrypted currencies such as the special currency, but in a rapidly changing situation, they may become "systemically important", thus forming a "systemic risk".

The EU and British authorities are planning to fight bitcoin, as concerns about financial crimes and money laundering are increasing.

As more and more financial institutions are entering this field, encrypted currencies can also cause the next crisis. "We see more hedge funds in this field," Hileman said, and new investments like the bitcoin futures market have emerged.

A survey published on Tuesday by Centre for Macroeconomics found that the main idea of economists is that the encrypted money has not yet constituted such a risk because they are "too small and too estranged from other financial markets".

But Hileman says the integration of encrypted currencies with the more traditional financial markets is "beginning to appear" and "very fast".

Hileman believes that encrypted currencies may not only threaten market stability, but they may also exacerbate the next crisis. "Now," he said, "you can easily exit (the traditional banking system) and enter into less related areas, which may aggravate the crisis."

Responsible editor: Zhang Yujie SF107

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