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CAMBRIDGE UNIVERSITY: THE MEDIA GREATLY EXAGGERATE, TALKING ABOUT THE IMMINENT COLLAPSE OF BITCOIN

December 17, 2018
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CAMBRIDGE UNIVERSITY: THE MEDIA GREATLY EXAGGERATE, TALKING ABOUT THE IMMINENT COLLAPSE OF BITCOIN

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December 17, 2018
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CAMBRIDGE UNIVERSITY: THE MEDIA GREATLY EXAGGERATE, TALKING ABOUT THE IMMINENT COLLAPSE OF BITCOIN

The Cambridge University reaserchers believe that the assumptions about the probable end of bitcoin, as a result of a decline in its rate by 85%, are “significantly exaggerated” by the media.

Earlier, Bloomberg, citing the results of the same study, wrote that in 2018 the number of verified users of cryptocurrencies almost doubled.

Analysts also came to the conclusion that the concentration of computing power of cryptocurrencies in geographical regions is not as serious problem as it is usually said, and the most rapid growth in this context has recently been demonstrated by North America.

The University of Cambridge determines a tenfold increase in the price of an asset in less than 6 months as a sign of a bubble. According to its categorization, bubbles are divided into local, affecting one cryptocurrency, and global, which extend their influence to the entire ecosystem. Local bubbles are much more common than global ones.

Fueled by media attention, the bubble of bitcoin and altcoins reached unprecedented proportions last year. When the market turned the direction, the media began to write massively about its decline.

“Statements about the death of the cryptocurrency asset industry were made after each global ecosystem bubble. Indeed, the 2017 bubble turned out to be the largest in bitcoin’s history, but the market capitalization of bitcoin and the cryptocurrency ecosystem still exceeds the levels of January 2017, that is, at the time before the bubble began. Thus, speculation about the death of the market and the ecosystem has been greatly exaggerated. In an extreme case, industry participants will have to postpone their plans for expansion,” the publication says.

According to statistics of 99bitcoins portal, the information containing the news about the death of bitcoin in connection with various circumstances was met in the media for 334 times.

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