Dooms day economist Nouriel Roubini thinks the price of bitcoin is going to drop to zero.
As the chairman of Roubini Macro Associates, Nouriel gave a less than optimistic speech at the World Economic Forum in Davos, Switzerland where he claimed that the "largest bubble in human history was primed to burst.
The ban on purchasing crypto-currencies on credit by big banks, following a spike in related defaults and the heads of the U.S. Securities and Exchange Commission and Commodity Futures Trading Commission set to testify before the Senate Banking Committee shortly are fuelling a Bitcoin runoff.
Further abroad Chinese regulators are working to restrict the number of crypto-currency exchanges amidst rumours of price manipulation at a major global exchange. This follows a complete ban in China of any Initial Coin offerings.
Big finance and regulators seems to be creating the fundamental downsides they all predicted would burst the crypto currency bubble in early 2017. South African regulators have taken a more reserved approach with the South African Reserve Bank stating that it falls outside of their mandate. The South African Revenue service has however jumped into action stating that they will be looking to go after Capital Gains Tax from the sale of crypto-currencies.
Despite the massive market movements and the speed at which regulators and big finance are now reacting the price of Bitcoin is only approaching November 2017 levels, and may reach a normalised trading level when the news cycle changes.
There is another speculative theory that a stabilisation in price may soon be reached due to wash trading, where traders will sell and buy their own orders to manipulate the price. Many are calling for authorities to monitor this practice, but the fundamentals of blockchain make this a hard task to execute.
Will Bitcoin crash to Zero or will it stabilise after ejecting pure speculators? Is it really a currency or just a social asset? The Block and Coin Summit will answer all of these questions, as well as venturing into the fundamentals of blockchain technology and their various applications beyond crypto-currencies.