BTC
USD
10,500
EUR
9,317.3
GBP
8,365.8
XRP
USD
0.3209
EUR
0.2847
GBP
0.2557
?
USD
---
EUR
---
GBP
---
BCH
USD
310.27
EUR
275.32
GBP
247.20
EOS
USD
4.071
EUR
3.613
GBP
3.244
LTC
USD
99.64
EUR
88.42
GBP
79.39
ADA
USD
0.05786
EUR
0.05134
GBP
0.04610
Please follow and like us:

Does the Cryptomarket Pose a Risk to the Broader Financial Market? Find Out!


The market of cryptocurrency is volatile and it is bouncing up and down. However, those who have not invested in BTC (Bitcoin), should they be concerned? What will happen to the ‘normal’ financial markets if cryptomarket continues to soar in popularity? Keep reading to know if the cryptomarket poses a threat to the financial markets.

There has been umpteen debates on whether cryptocurrencies are systemically important, meaning if they are a threat to the broader financial market or not.

Bitcoin, as well as, the other cryptocurrencies are quite tiny in theory. So, it does not cause any systemic risk in case the company’s share prices plummet. The cryptomarket is seen as just another sector that is affected by the highs and lows, just like any other industry.

Experts Speak in Favour of Cryptocurrency

The main point of debate focuses on the extent to which investors have borrowed in order to invest in cryptocurrencies. A certain section of financial experts are of the opinion that being just 600 billion worth, it has very little to threaten the existing financial market (http://fortune.com/2017/12/20/bitcoin-systemic-financial-risk/). In the event that the Bitcoin prices drop to‘0, any time in the future, the loss will be close to a fall of 0.6% in US equity prices (https://btcmanager.com/will-bitcoin-collapse-spillover-effect-stock-market/).

According to some connoisseurs, as of now, cryptocurrency holdings are not interconnected systemically. This reduces the likelihood

of the financial crisis that may be caused by the mortgage-backed securities.

Cryptocurrency, however, has the power to bring a downfall of the present financial system. This can happen only when the currencies issued by the central banks become extremely unstable. Thus, it can be concluded that the massive use of cryptocurrencies would only be the outcome of instability and not the cause.

Views Objecting to Cryptocurrency

# But, what matters most is the amount of leverage based on it, as it is via leverage that the financial system can be impacted.

# Another problem with bitcoins is that it has become totemic. People aged between 20 to 50 are seduced by the attractive returns and are investing in the financial markets. The key reason behind this sudden rise in investment is simply the craving for quick money.

# The impact of cryptocurrency is not direct. Its side-effects may well drag to the future because people usually do not invest in stock markets and most of it is kept as cash. As a result, you are left with less asset during the time of inflation. In the event that a new generation of investors find Bitcoin to be the first step to financial market, they will happily get back to cash, affecting their long-term wealth.

The problem is not with Bitcoin. Rather, the problem is that when the valuations of stock market rise, investors get a reason to worry and get anxious, and eventually sell out. A crucial sell-off in Bitcoin may be cause behind a huge impact.

What is reassuring in here is that while a Bitcoin sell-off may cause investors to assess some of the excessive valuation in the market, such hugh values are not going to be universal. Some experts believe that on an average, a market cycle is 7 to 8 years in length. The history of economics suggests that the cryptomarket may take 15 to 20 years to reach the tail-end of a bubble. (https://www.forbes.com/sites/cherryreynard/2017/12/31/is-bitcoin-a-risk-to-wider-financial-markets/2/#6cc2cc10f364)

Several people trade a highly volatile asset based on speculation.

  •  They borrow money
  •  They risk systemic impact

Can Bitcoin Collapse Affect the Market?

A crash in the price of digital currency could easily pass on to the broader market. 2017 began with a 1,000 plus since 2013 (https://btcmanager.com/will-bitcoin-collapse-spillover-effect-stock-market/). In spite of this, most investors would have trouble believing that the dollar valuation of Bitcoin would enhance by over a thousand percent in the coming months.

It is true that nascent investors are enjoying the sudden rise in Bitcoin. But, sceptics believe that what is visible now is just a bubble, that will sooner or later burst. This is one of the prime reasons why several financial institutions are not ready to invest in digital currencies.

Some forecasters are foretelling that a burst in value can cause a damage of unprecedented level in the stock market. They opine that the wild run of Bitcoin is directly proportional to the outcome of its fall for the stock market.

Bitcoin leveraging will not create a systemic crisis. However, it does have the potential to do so. Whether you are into Bitcoin or not, all historic bubbles have these features in common, though some of them ended well. So, only time will tell how Bitcoins are going to affect the existing financial market.

Please follow and like us:

Comments(103)

  1. comment how to get help in windows 10 says

    Why people still make use of to read news papers when in this technological globe everything is existing on web?

  2. comment gamefly free trial says

    Thanks for sharing your thoughts. I truly appreciate your efforts and I will be waiting for your further write ups thanks once again.

  3. comment gamefly free trial says

    Greetings! Very useful advice within this post! It’s
    the little changes that will make the biggest changes.
    Thanks a lot for sharing!

  4. comment how to get help in windows 10 says

    Hi there, I enjoy reading all of your post. I like to write a little
    comment to support you.

  5. comment gamefly free trial says

    Hello! This is kind of off topic but I need some guidance from
    an established blog. Is it very hard to set up your own blog?
    I’m not very techincal but I can figure things out
    pretty fast. I’m thinking about making my own but I’m not sure
    where to begin. Do you have any tips or suggestions?
    Appreciate it

  6. comment gamefly free trial says

    Hi, I think your website might be having browser compatibility issues.
    When I look at your website in Chrome, it looks
    fine but when opening in Internet Explorer, it has some overlapping.
    I just wanted to give you a quick heads up! Other then that, amazing blog!

  7. comment gamefly free trial says

    I am no longer sure where you’re getting your information, but good topic.
    I needs to spend a while learning more or working out more.
    Thank you for wonderful information I was searching for this info
    for my mission.

  8. comment gamefly free trial says

    Hey there! Someone in my Myspace group shared
    this site with us so I came to give it a look.

    I’m definitely enjoying the information. I’m book-marking and will
    be tweeting this to my followers! Fantastic blog and terrific style and design.

  9. comment gamefly free trial says

    Howdy! I’m at work browsing your blog from my new iphone!
    Just wanted to say I love reading your blog and look forward
    to all your posts! Carry on the superb work!

  10. comment gamefly free trial says

    Unquestionably believe that which you said. Your favorite justification appeared to be
    on the internet the easiest thing to be aware of.

    I say to you, I certainly get annoyed while people think about worries that they just don’t know about.
    You managed to hit the nail upon the top and defined out the
    whole thing without having side effect , people could take a signal.
    Will probably be back to get more. Thanks

  11. comment gamefly free trial says

    Greetings from California! I’m bored at work so I decided to browse your
    website on my iphone during lunch break. I really like the information you present here and can’t wait to take a look when I get home.
    I’m amazed at how quick your blog loaded on my mobile ..
    I’m not even using WIFI, just 3G .. Anyways, very good blog!

  12. comment gamefly free trial says

    Good day! Do you know if they make any plugins to assist with Search Engine
    Optimization? I’m trying to get my blog to rank for some
    targeted keywords but I’m not seeing very good gains.
    If you know of any please share. Kudos!

  13. comment gamefly free trial says

    This is my first time pay a visit at here and i am genuinely
    pleassant to read everthing at alone place.

  14. comment gamefly free trial says

    I used to be able to find good advice from your blog articles.

  15. comment gamefly free trial says

    Hmm it seems like your site ate my first comment (it
    was super long) so I guess I’ll just sum it up what I submitted and say, I’m thoroughly enjoying your blog.
    I as well am an aspiring blog writer but I’m still new to the whole thing.
    Do you have any tips and hints for novice blog writers? I’d
    definitely appreciate it.

  16. comment tinyurl.com says

    Wonderful article! That is the type of info that are
    meant to be shared across the web. Shame on the search engines for no longer positioning this publish upper!
    Come on over and visit my web site . Thank you =)

  17. comment tinyurl.com says

    These are in fact impressive ideas in regarding blogging.
    You have touched some fastidious factors here. Any
    way keep up wrinting.

  18. comment tinyurl.com says

    This paragraph will help the internet visitors for building up new weblog or
    even a weblog from start to end.

  19. comment http://tinyurl.com/y4fyb9zf says

    Aw, this was an incredibly nice post. Taking a few minutes and actual effort
    to produce a really good article… but what can I say…
    I procrastinate a lot and don’t seem to get anything done.

  20. comment ps4 free games says

    Superb website you have here but I was curious about if you knew
    of any message boards that cover the same topics talked about in this
    article? I’d really like to be a part of online community where I can get responses from other experienced people that share the same interest.
    If you have any recommendations, please let me know.

    Thanks a lot!

  21. comment http://tinyurl.com/ says

    Hi! Someone in my Facebook group shared this website with
    us so I came to take a look. I’m definitely loving the information. I’m bookmarking and will be
    tweeting this to my followers! Great blog and excellent
    style and design.

  22. comment http://tinyurl.com/y2q8j4sz says

    This is my first time pay a quick visit at here and i am genuinely impressed to read everthing at single
    place.

  23. comment tinyurl.com says

    Spot on with this write-up, I really believe this amazing site needs far more attention. I’ll
    probably be back again to read more, thanks for the info!

  24. comment http://tinyurl.com/ says

    Today, while I was at work, my sister stole my iphone and tested to see
    if it can survive a 40 foot drop, just so she
    can be a youtube sensation. My apple ipad is now broken and she has 83 views.
    I know this is entirely off topic but I had to share it with someone!

  25. comment http://t.co/acP1YDYLPp says

    Hey there just wanted to give you a quick heads up.
    The words in your content seem to be running off the
    screen in Safari. I’m not sure if this is a formatting issue or something to do
    with web browser compatibility but I thought I’d post to
    let you know. The style and design look great though! Hope
    you get the problem fixed soon. Kudos

  26. comment http://j.mp/ says

    I’m curious to find out what blog system you are working with?
    I’m having some small security problems with my latest blog and I would like to find something more secure.
    Do you have any suggestions?

  27. comment gamefly free trial 2019 coupon says

    It’s in point of fact a nice and helpful piece of info.
    I am glad that you simply shared this helpful information with us.
    Please stay us up to date like this. Thank you for sharing.

  28. comment ps4 best games ever made 2019 says

    Excellent website. Plenty of helpful information here. I am sending it to a few friends ans also sharing in delicious.
    And obviously, thank you in your sweat!

  29. comment http://tinyurl.com/yxptmyk8 says

    Hello colleagues, nice paragraph and good urging commented here, I am genuinely enjoying by these.

  30. comment ps4 best games ever made 2019 says

    We’re a group of volunteers and starting a new scheme in our community.
    Your web site provided us with valuable information to work on. You have done an impressive job and our whole community will be grateful to you.

  31. comment playstation 4 best games ever made 2019 says

    I’ve learn a few excellent stuff here. Definitely price
    bookmarking for revisiting. I surprise how much effort you place to create this kind of wonderful informative site.

  32. comment http://tinyurl.com says

    I really like your blog.. very nice colors & theme.
    Did you design this website yourself or did you hire someone to
    do it for you? Plz respond as I’m looking to design my
    own blog and would like to know where u got this from. cheers

  33. comment http://tinyurl.com/yyxkabvw says

    I am extremely impressed with your writing talents as well as with the format
    to your blog. Is that this a paid topic or did
    you modify it your self? Either way keep up the excellent high quality
    writing, it’s uncommon to look a great weblog like this one nowadays..

  34. comment quest bars cheap says

    Outstanding post however , I was wanting to know if you
    could write a litte more on this subject? I’d be very grateful if you could
    elaborate a little bit further. Cheers!

  35. comment quest bars cheap says

    I am really enjoying the theme/design of your blog. Do you ever run into any browser compatibility issues?
    A small number of my blog audience have complained about my website not
    working correctly in Explorer but looks great in Firefox.
    Do you have any recommendations to help fix this problem?

  36. comment quest bars cheap says

    You need to be a part of a contest for one of the best sites on the internet.
    I’m going to highly recommend this website!

  37. comment quest bars says

    wonderful publish, very informative. I wonder why
    the other experts of this sector do not understand this.

    You should proceed your writing. I am sure, you have a huge
    readers’ base already!

  38. comment tinyurl.com says

    Having read this I believed it was really enlightening.

    I appreciate you spending some time and effort to put this information together.
    I once again find myself spending a lot of time both reading and posting comments.
    But so what, it was still worthwhile!

  39. trackback Google says

    Google

    Although sites we backlink to beneath are considerably not associated to ours, we feel they may be basically worth a go via, so have a look.

  40. comment plenty of fish dating site says

    I’m gone to inform my little brother, that he should also pay a visit this website on regular basis
    to obtain updated from newest news update.

  41. comment quest bars cheap says

    It’s genuinely very difficult in this busy life to listen news on Television, thus I just use world wide web for that reason, and obtain the hottest information.

  42. trackback Don Karl Juravin says

    Don Karl Juravin

    […]usually posts some quite exciting stuff like this. If you’re new to this site[…]

  43. trackback indvoldsorm hund says

    indvoldsorm hund

    […]just beneath, are several absolutely not associated web sites to ours, having said that, they’re surely worth going over[…]

  44. trackback Healthy salty snacks says

    Healthy salty snacks

    […]very few web-sites that take place to be comprehensive beneath, from our point of view are undoubtedly well really worth checking out[…]

  45. trackback vibrator unboxing says

    vibrator unboxing

    […]always a large fan of linking to bloggers that I like but really don’t get lots of link enjoy from[…]

  46. trackback SUC Elibrary says

    SUC Elibrary

    Explore electronic resources for free, thousands of eBooks, accounting eBooks, business eBooks, Marketing eBooks, Accounting eBooks, Banking eBooks, Design eBooks, Customers eBooks, Travel and Tourism eBooks… and more

  47. comment Soledad Dipierro says

    Appreciate the efforts

  48. comment how to get help in windows 10 says

    I have been exploring for a bit for any high quality articles
    or blog posts on this kind of area . Exploring in Yahoo I at last
    stumbled upon this website. Reading this info So i am happy to convey that I have an incredibly excellent uncanny
    feeling I discovered just what I needed. I most undoubtedly will make
    certain to don?t disregard this website and give it a look regularly.

  49. trackback Google says

    Google

    Here are a few of the internet sites we advocate for our visitors.

  50. trackback kinky bondage says

    kinky bondage

    […]just beneath, are quite a few completely not related web sites to ours, nevertheless, they may be surely worth going over[…]

  51. trackback سكس امهات ساخن says

    سكس امهات ساخن

    […]we like to honor a lot of other web internet sites around the net, even though they aren’t linked to us, by linking to them. Beneath are some webpages worth checking out[…]

  52. comment tinyurl.com says

    Excellent items from you, man. I’ve take note your stuff previous to and you are simply too magnificent.
    I really like what you’ve obtained right here, certainly like what you’re stating and the way in which in which you assert it.
    You’re making it entertaining and you still take care of
    to keep it sensible. I cant wait to read much more from you.
    That is really a tremendous site.

  53. trackback appliance repair pitt meadows (604) 404-1677 says

    appliance repair pitt meadows (604) 404-1677

    […]we came across a cool internet site that you simply may possibly delight in. Take a search when you want[…]

  54. trackback wand massager says

    wand massager

    […]although internet sites we backlink to below are considerably not related to ours, we really feel they may be basically really worth a go via, so have a look[…]

  55. trackback desensitizing cream says

    desensitizing cream

    […]please visit the web pages we comply with, which includes this one particular, as it represents our picks in the web[…]

  56. trackback clitoral vibrators says

    clitoral vibrators

    […]check beneath, are some completely unrelated web-sites to ours, nonetheless, they may be most trustworthy sources that we use[…]

  57. trackback podcast says

    podcast

    […]we came across a cool site that you may well enjoy. Take a search when you want[…]

  58. trackback poker online terbaik says

    poker online terbaik

    […]very couple of websites that transpire to become detailed below, from our point of view are undoubtedly well really worth checking out[…]

  59. trackback agen poker indonesia terpercaya says

    agen poker indonesia terpercaya

    […]Every once in a though we opt for blogs that we study. Listed beneath would be the newest web sites that we pick […]

  60. trackback Dulles airport pick up & drop off says

    Dulles airport pick up & drop off

    […]just beneath, are quite a few completely not associated web sites to ours, nevertheless, they may be surely really worth going over[…]

  61. trackback BWI transportation says

    BWI transportation

    […]we came across a cool web page that you may get pleasure from. Take a search if you want[…]

  62. trackback vibrator for beginners says

    vibrator for beginners

    […]Sites of interest we’ve a link to[…]

  63. trackback gay sucking penis says

    gay sucking penis

    […]Wonderful story, reckoned we could combine a handful of unrelated information, nonetheless actually worth taking a look, whoa did one master about Mid East has got additional problerms as well […]

  64. trackback dp ring says

    dp ring

    […]just beneath, are many totally not associated internet sites to ours, having said that, they’re surely worth going over[…]

  65. trackback Make massive income says

    Make massive income

    […]we like to honor numerous other world-wide-web sites around the internet, even though they aren’t linked to us, by linking to them. Below are some webpages worth checking out[…]

  66. trackback home decor monthly subscription box says

    home decor monthly subscription box

    […]we prefer to honor numerous other world wide web web-sites on the internet, even if they aren’t linked to us, by linking to them. Under are some webpages really worth checking out[…]

  67. trackback adam and eve sex toys unboxing says

    adam and eve sex toys unboxing

    […]check below, are some completely unrelated internet sites to ours, on the other hand, they may be most trustworthy sources that we use[…]

  68. trackback maxbet online says

    maxbet online

    […]check below, are some completely unrelated web-sites to ours, nevertheless, they’re most trustworthy sources that we use[…]

  69. trackback Ντετέκτιβ Θεσσαλονίκη says

    Ντετέκτιβ Θεσσαλονίκη

    […]Every once in a although we choose blogs that we study. Listed below would be the most recent internet sites that we pick […]

  70. trackback Remove The Background From An Image Online says

    Remove The Background From An Image Online

    […]below you will uncover the link to some websites that we consider you must visit[…]

  71. trackback Walmartone login says

    Walmartone login

    […]the time to study or take a look at the subject material or web-sites we’ve linked to beneath the[…]

  72. trackback Liteblue Login says

    Liteblue Login

    […]The information talked about inside the post are some of the best available […]

  73. comment quest bars cheap 2019 coupon says

    I like the valuable information you provide in your articles.

    I will bookmark your blog and take a look at once more here
    frequently. I’m reasonably sure I will be told many new stuff right here!
    Good luck for the next!

  74. trackback viagra says

    viagra

    […]very couple of web-sites that take place to become in depth beneath, from our point of view are undoubtedly well really worth checking out[…]

  75. trackback hasta yatağı fiyatları says

    hasta yatağı fiyatları

    […]always a significant fan of linking to bloggers that I really like but do not get a great deal of link enjoy from[…]

  76. comment quest bars says

    This is the right web site for anybody who wants to find out about this topic.

    You realize so much its almost hard to argue with you (not that I actually would want
    to…HaHa). You certainly put a brand new spin on a subject that has
    been discussed for decades. Great stuff, just great!

  77. trackback internet marketing inc says

    internet marketing inc

    […]Wonderful story, reckoned we could combine some unrelated information, nonetheless genuinely really worth taking a appear, whoa did one particular discover about Mid East has got far more problerms at the same time […]

  78. trackback Philadelphia Elibrary says

    Philadelphia Elibrary

    Explore electronic resources for free, thousands of eBooks, accounting eBooks, business eBooks, Marketing eBooks, Accounting eBooks, Banking eBooks, Design eBooks, Customers eBooks, Travel and Tourism eBooks… and more

  79. trackback jockstrap brief says

    jockstrap brief

    […]we came across a cool web-site which you could possibly delight in. Take a look for those who want[…]

  80. trackback realistic masturbators says

    realistic masturbators

    […]although web-sites we backlink to beneath are considerably not connected to ours, we feel they are really worth a go by way of, so possess a look[…]

  81. trackback pizza online bestellen hamburg says

    pizza online bestellen hamburg

    […]usually posts some quite interesting stuff like this. If you are new to this site[…]

  82. trackback boho bracelet says

    boho bracelet

    […]check below, are some completely unrelated websites to ours, however, they’re most trustworthy sources that we use[…]

  83. trackback Copenhagen games says

    Copenhagen games

    […]the time to study or take a look at the content or web sites we’ve linked to below the[…]

  84. trackback bedroom toys for couples says

    bedroom toys for couples

    […]very few sites that occur to be comprehensive below, from our point of view are undoubtedly effectively worth checking out[…]

  85. trackback vibrating ring says

    vibrating ring

    […]Every when in a whilst we choose blogs that we read. Listed beneath would be the most up-to-date web sites that we opt for […]

  86. trackback masturbator says

    masturbator

    […]The information talked about inside the report are a few of the very best out there […]

  87. trackback iraniporn says

    iraniporn

    […]Every the moment inside a while we select blogs that we read. Listed beneath are the most current web pages that we choose […]

  88. trackback mide 675 says

    mide 675

    […]we came across a cool internet site which you might delight in. Take a look should you want[…]

  89. comment plenty of fish dating site says

    Everything is very open with a really clear clarification of the challenges.
    It was really informative. Your site is very helpful.
    Thank you for sharing!

  90. trackback free xxx says

    free xxx

    […]check below, are some entirely unrelated websites to ours, having said that, they are most trustworthy sources that we use[…]

  91. trackback adam male toys says

    adam male toys

    […]check below, are some entirely unrelated web sites to ours, nevertheless, they’re most trustworthy sources that we use[…]

  92. trackback Yt Mp3 says

    Yt Mp3

    […]we prefer to honor a lot of other world wide web web pages on the internet, even if they aren’t linked to us, by linking to them. Underneath are some webpages worth checking out[…]

  93. trackback Chinese baccarat strategy says

    Chinese baccarat strategy

    […]please go to the web pages we follow, including this one particular, as it represents our picks through the web[…]

  94. trackback unbeatable roulette system says

    unbeatable roulette system

    […]we came across a cool website which you could possibly love. Take a look in case you want[…]

  95. comment how to get help in windows 10 says

    Hi my loved one! I wish to say that this article is amazing, nice written and come with almost all important infos.
    I’d like to see more posts like this .

  96. trackback blackjack strategy double deck says

    blackjack strategy double deck

    […]Every when in a while we decide on blogs that we read. Listed beneath are the most current internet sites that we opt for […]

  97. trackback walmart1 says

    walmart1

    […]usually posts some really interesting stuff like this. If you are new to this site[…]

  98. comment how to get help in windows 10 says

    Wow, amazing blog layout! How long have you been blogging for?
    you made blogging look easy. The overall look of your website is wonderful, as well as the content!

  99. trackback hosting says

    hosting

    […]Here are a number of the websites we advise for our visitors[…]

  100. comment how to get help in windows 10 says

    Amazing blog! Do you have any helpful hints
    for aspiring writers? I’m planning to start my own website
    soon but I’m a little lost on everything. Would you suggest
    starting with a free platform like WordPress or go for a paid option? There are
    so many choices out there that I’m completely overwhelmed ..
    Any recommendations? Thank you!

  101. trackback Naija Music Download says

    Naija Music Download

    […]that may be the end of this post. Here you will obtain some sites that we think you will value, just click the hyperlinks over[…]

  102. comment 온라인카지노 says

    This post is nice, interesting indeed. It is an enbodiment of evergreen information. It really inspiring.

  103. comment plenty of fish dating site says

    Hello there! Do you know if they make any plugins to
    safeguard against hackers? I’m kinda paranoid about losing everything I’ve worked hard on. Any suggestions?

Post a comment

RSS
Follow by Email
Facebook
LinkedIn