Barclays’ Bitcoin [BTC] outburst – Are the banks jealous of cryptocurrency’s fame?
Bitcoin has been resembled to the spread of an infectious disease according to a group of analysts at Barclays. They believe that current slump in cryptocurrency has come due to the immunity developed by the buyers.
The analysts have compared many models to come to a conclusion that Bitcoin has peaked, that is, reached a point of maximum growth according to studies based on epidemiology. They have divided the Bitcoin users and investors into three separate groups: Susceptible, infected and immune. The assumptions which come are the infections spread by word of mouth. Joseph Abate, an analyst at Barclays continued the statement by adding that with the number of increasing asset holders, the share of users that are potential sellers also increases. This leads to prices to peak and with jolts to large supply population which increases the number of sellers as compared to buyers.
Tweeters on other hand were apprehensive, Philip Sim tweeted:
“Think about it. Why would banks be so hostile towards crypto currencies? Because they would be obsolete.”
While Temokles tweeted that:
“here’s a difference: There’s a group of unknown size that will never become immune, and that group stays pretty constant rather than moving around like it does with a flu. They’re not just passive carriers.”
Analysts further wrote about the immunity threshold by stating that there is a point when sufficient portion of the population becomes immune, secondary infections stop occurring. According to Barclays, when the population of the asset holders increases, ‘the share of the population available to become new buyers — the potential ‘host’ population — falls, while the share of the population that are potential sellers (‘recoveries’) increases’.
They have predicted that Bitcoin will never recover and it may never return to its peak of $20,000 which it held in December. They believe that speculative froth phase of the cryptocurrency investment has passed.
A Redditor commented on the updates by saying:
“This is dumb. The stock market just crashed a bunch of times, people lost tons of money. Were they all naive and “infected” rubes?”
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