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Bitcoin, More Like ‘Bitcon’ Will Soon Become Zero, Says Economics Professor

Another ‘nocoiner’ academic has lent his voice to the Bitcoin doomsday FUD, calling Bitcoin a “con.” Since the emergence of cryptocurrency into the public sphere, there has been no shortage of critics and unbelievers. From Warren Buffett to Charlie Munger, and even Bill Gates, numerous notable figures in the global business scene have thrashed virtual currencies.

Bitcoin Has No Fundamental Value

Gary Smith, an Economics professor at Pomona College, says that Bitcoin has no fundamental value. Berkshire Hathaway chief, Warren Buffett have made this same argument. Smith contends that as an investment, Bitcoin is a “bitcon.” The Econ professor based his declaration as follows:

The fundamental value of an investment is the amount you would be willing to pay to hold it forever and be satisfied by the cash it generates. Businesses that make profits have investment value. Bitcoins generate no cash and have no investment value. No sane person would buy bitcoins and say, ‘This is a great investment. I will never sell my bitcoins because I am happy just owning them.’

Smith sounds like someone who probably bought Bitcoin during the December 2017 high. There are many investors (hodlers) who have realized the long-term investment potential of the top-ranked cryptocurrency and have held on to their BTC for long. Permabulls like the Winklevoss twins and Tim Draper come to mind.

Smith makes another inaccurate assessment in his analysis when he says that BTC is not attractive when the price is in decline, unlike “real investments.” The reverse is the case. BTC is most attractive when prices find a new floor, it is called “buying the dip.” Bitcoin goes through repeated cycles on boom and bust. Anyone familiar with its history knows that 70 percent peak to trough dips aren’t new in the BTC market.

Bitcoin is a Modern Day ‘Nitvender’

After failing to make a convincing argument for the lack of value argument, Smith dredges up the bubble rhetoric, another battered Bitcoin criticism. He compares the top-ranked crypto to the usual suspects like the Tulipmania, the dot-com bubble, and curiously, the South Sea Bubble. In what is a reference to the South Sea Bubble, Smith called Bitcoin the modern-day ‘nitvender.’

What makes the South Sea Bubble particularly interesting is that it encompasses multiple waves of scam offerings that were popular in 16th-century Britain. Sir Isaac Newton famously fell victim for one of the scams, losing £20,000 in the process. Smith argues that the price of Bitcoin has no basis in any economic fundamentals just like the South sea nitvender.

Smith ignores the finite amount of the total Bitcoin supply in his zero-sum crypto Armageddon. BTC is also divisible up to eight decimal points meaning there are ten million place values to which economic value can be assigned depending on the total market cap when all 21 million BTC have been mined.

The truth is that folks like Smith fail to understand that tokenomics don’t bend to the crooked scales of mainstream economics. Mathematically speaking, BTC isn’t a zero-sum game; thus, it isn’t a Ponzi scheme.

Do you agree with Gary Smith’s analysis or is he another ‘nocoiner’ who is ignorant of how Bitcoin works? Keep the conversation going in the comment section below.

Image courtesy of Coinmarketcap.

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Jack Ma: “Technology Itself Isn’t The Bubble, But Bitcoin Likely is”

He is actively exploring blockchain potential, but is staying away from cryptocurrencies

Chinese businessman and billionaire Jack Ma, famous for owning the Alibaba Group business emporium, once again warned of the possibility that Bitcoin could be a bubble, according to Bloomberg.

Jack Ma presents Justin Sun with Diploma

Jack Ma is also known in the crypto sphere for mentoring Justin Sun, creator of Tron (TRX), a successful blockchain with an aggressive business model. Now, Justin Sun wants to mentor other entrepreneurs.

Mr Ma commented on Bitcoin during an event held by Ant Financial Services Group this Monday. Ant Financial Services is a China-based corporation specialized in financing, money management, and other services. Its parent organization is precisely Alibaba.

Jack Ma had previously adopted this Pro-Blockchain/ Anti-Bitcoin stance, but in the past he had taken a more conservative approach, confessing that although it was his personal opinion, it was that of someone inexperienced in the field.

However, this Monday he was a little more direct, maintaining his way of thinking, but with less subtle statements:

“Blockchain technology could change our world more than people imagine… Bitcoin, however, could be a bubble.”

Jack MaJack Ma

The debate over the usefulness of Bitcoin has divided the community of investors more than the conceptions regarding the usability of blockchain technologies. More and more discussions are separating the two concepts, concluding that they will follow different paths.

Jack Ma’s criticism points to the fact that excessive and uncontrolled speculation may be giving counterproductive results for the global adoption of cryptocurrencies:

“(The Blockchain)must be used to solve data privacy, security and sustainability issues … (but cryptocurrencies have become) tools and concepts for making money.”

Jack Ma

Last year Bitcoin started with a value close to 1k and culminated with a growth that took it to a maximum of 20K at the end of the year.

Graphs: Tradingview

According to Jack Ma, this is not only an anomaly in price performance, it is also wrong. He also mentioned that this speculation makes bitcoin dangerous even though the technology behind it (Blockchain) is promising:

“It is…not right to become rich overnight by betting on blockchain … Technology itself isn’t the bubble, but bitcoin likely is,”

Jack Ma

Jack Ma: Making Finances Better, Just Not Thanks To Crypto

In the meantime, Jack Ma is working on a new payment and remittance model. Previously, the CFIUS or “Committee on Foreign Investments in the United States,” blocked his attempt to buy MoneyGram, a move that sparked the idea of creating a better competition to traditional payment services such as MoneyGram.

Jack Ma is currently working on a money transfer service that would initially operate between Hong Kong and the Philippines. This will be a pilot service before expanding to the rest of the world.

To achieve this, Alipay is establishing strategic alliances with various institutions such as Standard Chartered and several other fintechs.

Fintechs according to Jack Ma will revolutionize the way of sending money and doing businesses around the world:

“Traditional financial institutions serve 20 percent of people and make 80 percent of profits. New financial institutions should service 80 percent of people, and make 20 percent of profit,”Jack Ma

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Binance: The Cryptocurrency Bubble Needs to Burst

Ella Zhang, the head of Binance Labs believes there is a cryptocurrency bubble that needs to burst before true blockchain utility can emerge. Zhang recently announced that Binance was investing $1 billion in support of cryptocurrency and blockchain technology startups.

True Utility Will Only Emerge After the Cryptocurrency Bubble Bursts

In a phone interview with Bloomberg, the Binance Labs chief outlined the company’s views on the present state of the market, saying:

We’d like the bubble to break. We still see a lot of hype in the market, valuations are high and unreasonable. We really think if the bubble bursts, it’s a good thing for the industry.

Many cryptocurrency critics say the market is a bubble. Some have even likened it to previous market bubbles like the dot-com bubble of the 90s and the tulipmania of the 17th century. The consensus among the crypto-naysayers is that digital currencies will die-out after a few years.

For the crypto-proponents, many debunk the bubble claims. Even the ones who do say when the bubble bursts, the projects with real utility will emerge and cryptocurrencies will drive the development of the future. They point to the dot-com crash and how it led to the evolution of the modern-day e-commerce space. Zhang’s sentiments seem to support this last opinion. According to the head of Binance Labs, the crypto bull run is good for attracting investors, but it offers no real utility for the market beyond the flow of liquidity.

The Binance Fund and Support for Crypto and Blockchain Startups

Binance recently announced a $1 billion support fund for cryptocurrency and blockchain startups. As head of Binance Labs, the venture incubator for the Binance platform, Zhang is directly in charge of overseeing the support fund. The company is also taking steps to combat the prevalence of fraud in the industry. Binance, the cryptocurrency exchange behemoth plans to launch the Cryptocurrency Governance Initiative (CGI) with the website going live.

Speaking on the initiative, Zhang said:

The main purpose of this is to fight scams and sh*t coins and to boost crypto and blockchain technology.

The head of Binance Labs also said that any project that Binance invests in must vow not to participate in pump and dump schemes. According to Zhang, Binance will closely monitor each project to ensure that they remain in compliance with the provisions of the fund. Any project found violating the terms and conditions will be immediately de-listed and company will cease its collaboration with the erring party.

Record Revenue Earnings for ICOs in 2018

Zhang’s comments on the state of the market bring into sharp focus the Initial Coin Offering (ICO) scene. Despite the decline in the prices of digital currencies, the ICO market continues to grow. 2017 was a breakout year for ICOs with many projects raising hundreds of millions of dollars. The sale of digital tokens by ICOs in 2018 has already far exceeded the record set in 2017. According to figures released by Coinschedule, ICOs have raised about $9.6 billion so far in 2018.

Do you agree with Zhang’s notion that the crypto bubble needs to burst before the industry can indeed begin to flourish? What are your views on Binance’s efforts to support cryptocurrency and blockchain technology startups? Keep the conversation going in the comment section below.

Image courtesy of Shutterstock, LinkedIn (https://www.linkedin.com/in/ella-zhang-992b9817), and Coinschedule.

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Bitcoin Might Not Exist Beyond the Next 100 Years, Says Nobel Laureate Economist

According to Yale University Economics Professor, Robert Shiller, Bitcoin (BTC) might not exist in the next 100 years. He made this prediction during a recent televised chat with CNBC. The 2013 Nobel Prize winner in Economics listed some scenarios that could prove fatal for the number one cryptocurrency. Despite his prediction, the prominent economist noted that it was hard to know the future of cryptocurrency with any certainty. Mainstream investors like Warren Buffet and Charlie have sounded the death knell for BTC on many occasions. Buffet once declared that the entire cryptocurrency market would come to a bad end.

Too Many Hard Forks Might ‘Kill’ Bitcoin

Shiller commented on the sheer number of Bitcoin hard forks saying:

There will have been many hard forks changing it and changing it. And, it’ll be a matter of dispute whether it exists or not.

There are over 40 recorded Bitcoin hard forks with Bitcoin Cash the most popular of the lot. A recent report showed poor performance for many of the forks. Shiller predicts that there will be more Bitcoin hard forks in the future leading to a congestion of the Bitcoin identity. Even if Satoshi Nakamoto’s creation exists in the year 2118, Shiller expects that it will go by a different name saying:

Bitcoin won’t look anything like it is today. It will have a different name if it exists.

The Bubble May Burst and Bitcoin Plummet to Zero

Shiller has in the past, referred to Bitcoin as a bubble. The BTC bubble argument is a popular notion for many mainstream finance experts who state that the market bears a resemblance to a typical bubble economy. According to Shiller, the Bitcoin hype lends itself more to group psychology than any actual economic metric. Thus, he predicts that BTC is doomed to be a failed currency experiment.

Speaking during the interview, Shiller identified a scenario where BTC could suffer a massive decline drawing parallels with the 2013 price plummet.

The one scenario is that something like what happened after 2013 when bitcoin topped $1,000 and then lost 80 percent of its value. It looked like bitcoin was fading away.

Not all Doom and Gloom for Bitcoin

In the past, Shiller has proven himself adept at identifying bubbles. He accurately called the dot-com and the housing bubbles years before they happened. Not even the Nobel Prize winner is confident of his Bitcoin doomsday prediction.

I don’t mean to be dismissive [but] it [Bitcoin] looks like a bubble. It’s getting people enthusiastic, and there are making different kinds of cryptocurrencies. There are thousands of them now. Something good may come out of it.

Four years after losing 80 percent of its value, BTC rose to $19,500 in mid-December 2017. The price has since dropped more than 50 percent even going below the $6,000 mark in February 2018. However, BTC is still up by 700 percent since the start of 2017.

Do you agree that Bitcoin might not outlive the next 100 years? Do you think Bitcoin is the currency of the future? Keep the conversation going in the comment section below.

Images courtesy of CNBC and Twitter (@cryptomanran).

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J.P Morgan Chase ‘Looking Into’ Bitcoin (BTC), Blockchain and Cryptocurrencies

In a complete 180 degree turn from previous comments by J.P Morgan Chase CEO and Chairman, Jamie Dimon, and with regards to Bitcoin (BTC) and cryptocurrencies, the company’s co-president, Daniel Pinto, has stated that they are looking into the crypto space. In an interview with CNBC, Mr Pinto had this to say when asked about Bitcoin (BTC) and other digital currencies:

We are looking into that space. I have no doubt that in one way or another, the technology will play a role. [Regarding bitcoin], you cannot have something where the business proposition is to be anonymous and to be the currency for unknown activities. That will have a very short life, because people will stop believing in it, or the regulators will kill it. I think the concept is valid, you have many central banks looking into. The tokenization of the economy, for me, is real. Cryptocurrencies are real but not in the current form.

He also remarked about the current trend of Wallstreet firms offering Futures products on Bitcoin and other prominent cryptocurrencies:

If we need to clear futures of bitcoin, can we do it? Yes. Have we done it? No

Mr. Pinto’s comments came almost 6 months after Jamie Dimon had slammed Bitcoin by calling it a fraud. Mr. Dimon had further declared that his firm was willing to fire any employee willing to trade Bitcoin for it was a stupid act. He would later backpedal on his comments to the delight of cryptocurrency enthusiasts who in turn predicted that it would only be a matter of time before he sees the benefits of the crypto and blockchain industry.

J.P Morgan Chase has done just that when it filed for a blockchain patent back in October. The news was not unveiled until earlier this month. The patent outlines a system that would essentially use distributed ledger technology – blockchain – to keep track of payments sent between financial institutions.

In a nutshell, ‘big’ Wallstreet firms have finally seen the light and are in the process of investing in blockchain technology and cryptocurrencies.

[Photo source, money.cnn.com]

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Bitcoin (BTC) Supply To Be Increased With Proposed Mining Of 17 Millionth Coins

A data from Blockchain.info revealed that there may be an increased supply of Bitcoin due to the 17 millionth bitcoin alleged to be mined in some days. This is a huge progress for bitcoin, due to the fact that Bitcoin’s byelaw stipulates that only 21 million bitcoin can ever be created. The first thing to note is that Bitcoin was made to be scarce economically with the said 21 million which could be created, but now there is potential availability for the coin.

According to different reports, it is easy to guess the time that the bitcoin would be mined due to the common software sync. In the views of many, like Tetras Capital founding partner Alex Sunnarborg, when contacted by . Bitcoin, revealed that the result could best be interpreted as 80 percent of all the bitcoin that will be ever created have now been mined, stating that just 1/5 of the supply is apportioned to future miners and buyers.

Tim Draper sees it as an “awesome,” milestone, for the fact that the founders did not imagine Bitcoin could go this far.

“I would bet the founders wouldn’t have imagined how important bitcoin would become in their wildest dreams.”

Some also, in their observation believe the mine is an enlightenment on the future of the coin and even other cryptocoin. Many do not know that unless those behind Bitcoin make changes, it is impossible to introduce more bitcoin to the crypto space.

The Futures of Bitcoin.

The recent statement that from Nasdaq on Bitcoin give more credence to the coin. People are doubting the legitimacy of Bitcoin and the cryptospace entirely. However, they are now opening their minds to the fact that cryptocurrencies have come to stay.

Yesterday, Adena Friedman, CEO of Nasdaq, made it clear that crypto has no possibility of dying any moment from now.

“I believe that digital currencies will continue to persist…it’s just a matter of how long it will take for that space to mature,” Friedman opined on CBNC.

“Once you look at it and say, ‘do we want to provide a regulated market for this?’ Certainly, Nasdaq would consider it.”

Above statement by Nasdaq CEO is making many people have a rethink of cryptocurrency. Soon, government will start embracing the coin.

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Amazon Partnership Speculation High For Ripple (XRP) As Markets Go Crazy

The internet is abuzz on the green candles being observed by traders over the past few hours. Bitcoin (BTC) is up 13% and is currently trading at %7,759. Ethereum (ETH) is also exhibiting some action and has risen 11.65% to trade at $463. Looking at Litecoin (LTC) it has been dethroned from the number 5 spot by EOS (EOS) which has been doing tremendously well with 31% gains in 24 hours and currently trading at $8.79. Litecoin (LTC) is trading at $122 and Ripple (XRP) has done 11% gains to trade at $0.55 at the moment of writing this.

Perhaps all these gains are what Abra CEO, Bill Barhydt, was talking about when he said All Hell Will Break Loose as soon as the big time investors start investing in cryptocurrencies. One such big time investor that has been on the mouths of many Ripple traders is Amazon.com and whether there is a partnership in the offing for the Crypto-verse between the two projects.

Speculation of an Amazon partnership were first seen in the Crypto-verse late last year. The idea behind the speculation hinged on the reliability of XRP during transactions. The coin is known for 3.3 second transaction speeds and $0.0004 charges per transactions. All qualities a giant online retailer  and wholesaler like Amazon would like to have as part of its online payment settlement options moving into the future.

The same speculation was seen earlier on in March this year. This time round, XRP blockchain solutions were suggested as being ideal for Amazon’s fleet management system on top of the revolutionary payment solutions. Of noteworthy mentioning, is the new Kentucky Airport hub Amazon is building for its global business. Such a hub needs fast and reliable blockchain software solutions.

The Amazon partnership speculation was also mentioned in the youtube video by Chronic Crypto that had predicted that XRP will jump to $24.48 by the end of the year, and after the current market crash or dip is over.

After the last few hours, one can easily assume that the crash is finally over and All Hell Is Breaking Loose in the Crypto-verse. It looks like the time is now for a Moon Landing for all coins including our beloved XRP.

[Photo source, elevenews.com]

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George Soros Warms Up To Crypto (BTC, ETH, XRP)

In an epic move, George Soros, the billionaire business magnate and investor, is now in the business of cryptocurrency investing. Soros was initially one of the prominent investors that were vehemently against Bitcoin (BTC) and crypto in general earlier this year.

Adam Fisher, who oversees macro investing at New York-based Soros Fund Management, says he got internal approval for the move to trade in digital assets a few months ago. Mr. Fisher is yet to declare the depth of the investment by the fund.

This is a complete 180 degree turn from what Soros said in January this year. He was quoted as saying:

“Cryptocurrency is a misnomer and is a typical bubble, which is always based on some kind of misunderstanding…Bitcoin is not a currency because a currency is supposed to be a stable store of value and the currency that can fluctuate 25% in a day can’t be used for instance to pay wages because wages drop by 25% in a day. It’s a speculation. Based on a misunderstanding.” 

From the point of view of many Crypto traders and enthusiasts, his statement were viewed as ‘blasphemous’. But you can at least try to put yourself in Soros’ shoes when he made these statements. Blockchain and crytpocurrencies came into the global limelight in a manner similar to a Tsunami. And being a traditional investors of stocks, bonds and shares, digital assets would look like ponzi schemes to Mr. Soros.

But for the generation that is under 35 who have grown up with the internet, video games and social media, cryptocurrencies seemed like any other good idea in their generation similar to the iPhone or Spotify. This is why we find teenagers being Bitcoin millionaires after buying the coin years ago using their $20 weekly allowances that they saved up under their pillows.

Soros joins a growing list of big investors who have seen the proverbial light of cryptocurrencies and their potential to change global economics. Another Bitcoin doubter turned believer, is the popular Shark Tank Investor and owner of the Dallas Mavericks, Mark Cuban. He too had declared Bitcoin as being a bubble only for him to recant his statements and further accept Bitcoin (BTC) as a form of payment for tickets to see the Dallas Mavericks play.

We can now safely bet that J.P Morgan’s Chairman and CEO, Jamie Damon, will also see the light and potential of cryptocurrencies after also calling Bitcoin a fraud earlier this year.

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Italy's Economy Minister Blasts Crypto Market Bad Behavior

Italy’s economy minister struck a critical tone on cryptocurrencies Wednesday, remarking during an event that damage could arise should a market bubble “explode” even as central banks eye the technology.

Speaking during an event at the Polytechnic University of Milan that was organized by energy giant Enel (which itself has trialed blockchain for energy trading purposes), Economy Minister Pier Carlo Padoan joined the growing chorus of government officials who have decried the price developments around cryptocurrencies in recent months.

“The oversight authorities are ever more active and the central banks are weighing whether to use cryptocurrencies but then, if the phenomenon explodes, they can do harm,” Padoan remarked, according to a report from Ansa Business.

The publication also quoted Padoan as saying that the issue isn’t strictly technological, but rather a consequence of how it’s used.

“Blockchain is a technology and technology is one thing, and the use you make of it is another,” he told event attendees. “The problem is not the technology but the behavior”.

Speculation around cryptocurrencies has caught the attention of Italian regulators in the past, including its tax office, which in late 2016 moved to treat bitcoin as a kind of currency for tax purposes.

Market watchdogs have also targeted local promoters of the OneCoin investment scheme, which has been widely accused of being a Ponzi scheme, ultimately issuing a 2.59 million euro fine last August.

Pier Carlo Padoan image via Wikimedia Commons 

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at news@coindesk.com.

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Housing or Dotcom: Which Bubble Does Cryptocurrency Mania Resemble?

Marc Hochstein is the managing editor of CoinDesk and a former editor-in-chief of American Banker. 

The following article originally appeared in CoinDesk Weekly, a custom-curated newsletter delivered every Sunday exclusively to our subscribers.


“It seems like the dotcom bubble all over again, or the housing bubble all over again.”

That’s Robert Shiller, the Nobel Prize-winning Yale economist, quoted in Fortune magazine’s cover story on bitcoin.

So: dotcom or housing? Pick one, professor. Because there’s a meaningful difference.

Debt bubbles, like the one that overheated the U.S. housing market in the 2000s and ultimately sparked a global financial crisis, leave behind encumbrances. Tech bubbles, like the 1990s internet mania, leave behind infrastructure.

The last great debt bubble gave us $700 billion of bailouts and more than 2,000 pages of legislation (not counting the reams of regulations putting the Dodd-Frank Act into practice) in the U.S. alone.

Rather than ending “too big to fail” we ended up with the biggest TBTF institutions ever, zombie foreclosures that sat vacant for years waiting to be repossessed, and the spectacle of Occupy Wall Street stinking up a public park and scaring the children.

The last great tech bubble, on the other hand, funded the rollout of fiber-optic cable networks and research into 3G mobile computing. It fueled the development of smartphones (Apple, Samsung), algorithmic search (Google), big data logistics and e-marketplaces (Amazon, Alibaba), social media (Facebook, Twitter), cloud computing (Dropbox, AWS), the platform and app economies (Airbnb, Uber) and so forth. (To be fair, tech-stock shenanigans from that era were also a factor that led to Sarbanes-Oxley.)

As with a century earlier, when a boom-bust cycle in the 1880s and 1890s left behind a national railroad system, the dotcom bubble totally transformed the economy.

So while cryptocurrencies are almost certainly in a bubble – I mean, come on, dogecoin’s market capitalization is above $1 billion, and its software hasn’t been updated in two years –  the pertinent question is what kind of bubble.

Pain ahead

True, either way, there will likely be steep financial losses, tears, layoffs, business failures, a funding drought, recriminations, pious editorials, lawsuits (meritorious and otherwise), prosecutions, congressional hearings, political grandstanding, unfunny “Saturday Night Live” skits and, quite possibly, burdensome new regulations.

But there probably won’t be bailouts.

For one thing, bitcoin and its myriad clones and mutations are, even now, too small and too segregated from the broader financial system to warrant such an intervention.

And given the threat that decentralized money poses to tax collection and financial surveillance, it’s not something most governments would be inclined to rescue from the abyss.

So crypto bagholders will be on their own – as it should be. If you don’t see why, google “moral hazard.”

Further, if someone makes a stupid bet on a cryptocurrency that goes south, his losses are limited to the cash he invested. (Hopefully not from his retirement savings.)

In sharp contrast, when housing prices returned to earth, the suckers who had taken out subprime mortgages still had six-figure debts hanging over their heads. Even after the borrowers mailed the house keys to their lenders, the foreclosures left a stain on their credit reports for years before they could get their financial lives back.

So the potential damage from this bubble is limited when compared to the crash of 2008. And arguably the upside is greater.

Because this bubble could leave behind the rails of a new and improved financial system.

Laying foundations

It is true that, as Lightning Network co-founder Elizabeth Stark recently noted on Twitter, many of the people doing important infrastructural work in bitcoin do so as a labor of love, not for the money. As the old saying goes, cypherpunks write code.

And it’s hard to imagine many of the frivolous initial coin offerings (ICOs) out there leaving much of a legacy, apart from souvenir white papers (our era’s version of those vintage stock certificates you can buy for a few bucks from Wall Street sidewalk vendors).

But it’s also hard to imagine that none of the blockchain projects being showered with money by venture capitalists and, increasingly, ICO “contributors” (an unfortunate euphemism) will amount to anything. The ones that do may form an important, if intangible, infrastructure for global digital commerce.

Possibly in ways we can’t yet imagine. The spreadsheet and the relational database are examples of applications of pre-internet computing that no one foresaw as they were building computers – transformative technologies that no one could have conceived of until after all the investment in a new platform was done.

And of course there’s the internet itself, whose humble beginnings were in Cold War military commanders’ need for a resilient communication network in the event of a nuclear attack.

Robert Shiller will always be a hero for calling out the U.S. housing market’s excesses when it was politically incorrect to do so. But he’s mistaken for speaking of financial bubbles as if they were interchangeable and equally destructive.

A final note: One good thing did arguably come from the last debt bubble, albeit indirectly.

If the crisis hadn’t shaken the world’s faith in centralized institutions and financial intermediaries, we might not have gotten bitcoin.

The leader in blockchain news, CoinDesk strives to offer an open platform for dialogue and discussion on all things blockchain by encouraging contributed articles. As such, the opinions expressed in this article are the author’s own and do not necessarily reflect the view of CoinDesk.

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