The article writes about what might happen if the bitcoin bubble bursts. Since the majority of the bitcoin market is owned by a few thousand people, the impact they are expecting will only make those few thousand people a little bit less rich. However, if you compare it to the dot com bubble, they are expecting the big player’s to be fine, but the smaller companies that rely on bitcoin might go out of business.
- Bitcoin has surged over the past year from $900 in January to almost $20000 today
- The market, while in the hundreds of billions, is mainly controlled by early adopters and the ultra rich.
- While a crash will destroy their portfolios, it could have spill over to other markets.
“The debut of bitcoin futures on two major exchanges – initially expected to bring down Bitcoin’s price by allowing investors to short it, i.e. bet against it – has ended up giving the cryptocurrency more legitimacy among retail investors, further boosting its price.”
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