FYI: The odds are overwhelming — above 80% — that bitcoin will crash in coming months.
I base this bold prediction on a study, “Bubbles for Fama,” that appeared earlier this year in the Journal of Financial Economics. Its authors are Robin Greenwood, a finance and banking professor at Harvard Business School and chair of its Behavioral Finance and Financial Stability project; Andrei Shleifer, an economics professor at Harvard University; and Yang You, a Ph.D. candidate at that institution.
This prediction has nothing to do with the particulars of bitcoin BTCUSD, -15.06% I hasten to add. It might be, as this cryptocurrency’s true believers insist, that it will eventually dominate the monetary system, replacing gold as well as paper currencies as both a means of exchange and a store of value. But even if that turns out to be true, bitcoin would still be vulnerable to a crash. That’s because the high probability of its crashing derives solely from the rapid pace of its price rise, which in recent days has become parabolic.
Regards,
Ted
https://www.marketwatch.com/story/bitcoin-is-very-likely-to-crash-soon-research-shows-2019-06-27/print
