The more research I do, the more certain I become that we are very close to another economic crisis, and that this one will be significantly worse than the one in 2007. So the question becomes how will cryptocurrency do in this situation? I wanted to take a look at the top 3 cryptocurrencies. Now what a lot of people don't know is that according to a business intelligence article http://www.businessinsider.com/927-people-own-half-of-the-bitcoins-2013-12 only 927 people own half of all bitcoins. This means that just a single person can create a very significant movement in price. Recently, the Rothschild Corporation Filed a $210,000 Bitcoin Purchase Through A Bitcoin Investment Fund. The question now becomes, are Bitcoin and the other major cryptocurrencies just a major oligopoly where just a few people control everything, and what will these people do in an economic collapse?
Bitcoin came out significantly earlier than the other cryptocurrencies, for this reason I would presume that it has a higher ownership from individual people than mass corporations. Based on this, I believe that Bitcoin would greatly increase in value with a panic in the stock market. Now relatively little information is known about the ownership of Ethereum, however with that massive flash crash that happened last month, it seems that the ownership of Ethereum is even more concentrated than Bitcoin. Some of the worlds biggest banks like JP Morgan own substantial amounts of Ethereum and in a crash would in all likelihood go on to sell all of it which could potentially crash the market significantly.
Because Ripple is centralized and owned again in a large portion by big banks and one single company I would predict that Ripple would also crash in price. Ultimately the challenge becomes an imbalance of wealth. In society 2% of the people own 98% of the wealth, and cryptocurrency is turning out to be no different. What are your thoughts on Cryptocurrency in a crash? Do you agree with my predictions? Why or Why not?
