• Entertainment
  • Finance
  • Marketing
  • Real Estate
  • Technology
  • Social
National Journal Community Of e-Experts
Finance 0

Bitcoin As An ‘Infectious Disease’: One Bank Says The Crypto Plague Is Almost Over

By Kurt Osterberg · On April 10, 2018

I don’t know about you, but I love a good cryptocurrency note that finds analysts attempting to develop a model to value something that has no value.

Bitcoin and its progeny are worthless. They have no intrinsic value and as Jack Bogle reminded investors last year, “Bitcoin has no underlying rate of return” and as such, “there is nothing to support bitcoin except the hope that you will sell it to someone for more than you paid for it.”

Right. It’s the greater fool theory of investing taken to its logical extreme which, almost by definition, means it’s pure, unadulterated speculation.

Bogle, speaking last November at a Council on Foreign Relations event in New York, added the following piece of advice for good measure:

Avoid bitcoin like the plague. Did I make myself clear?

Crystal, Jack. Crystal.

ahh

Well as it turns out, Bogle isn’t the only one who thinks Bitcoin and cryptocurrencies should be likened to “the plague.”

In a highly amusing new note, Barclays’ Joseph Abate asks if it makes sense to think about Bitcoin prices in the context of “compartmental models of the spread of an infectious disease in epidemiology.”

“Like the infection analogy, the population divides into three groups: ‘susceptible’ individuals who are vulnerable but not yet infected; ‘infected’ individuals; and those who are ‘immune’,” Abate writes, adding that “like infection, transmission – especially to those with ‘fear of missing out’ – is by word-of-month, via blogs, news reports and personal anecdotes.”

He begins with an “asset” (and I use that term extremely loosely) with an unknowable long-term fundamental value that’s concentrated initially in the hands of a small number of people – those people are “the infected”.

He then divvies up the rest of the population into those who are ‘susceptible’ and those who are mercifully ‘immune’ to speculating in something that’s worthless. Here’s more from Abate:

Print Friendly, PDF & Email

Share Tweet

Kurt Osterberg

You Might Also Like

  • Finance

    Bored Ape Metaverse Launch Date set for April 30

  • Finance

    Celebrity Backed NFT Collections to Invest in 2022

  • Finance

    Bored Ape Metaverse Launch Date set for April 30

No Comments

Leave a reply Cancel reply

Top Finance

  • 3 Best Large-Cap Blend Mutual Funds For Enticing Returns 3 Best Large-Cap Blend Mutual Funds For Enticing Returns
  • Hedge Funds In The US Hedge Funds In The US
  • What is Value Chain Analysis? How to Deliver Value & Gain a Competitive Advantage What is Value Chain Analysis? How to Deliver Value & Gain a Competitive Advantage
  • 5 Ridiculously Useful Non-Monetary Reward Examples that Improve Employee Engagement 5 Ridiculously Useful Non-Monetary Reward Examples that Improve Employee Engagement
  • Chart: Amazon’s Dominance In Ecommerce Chart: Amazon’s Dominance In Ecommerce

New Posts

  • Bored Ape Metaverse Launch Date set for April 30

    Bored Ape Metaverse Launch Date set for April 30

    April 24, 2022
  • Celebrity Backed NFT Collections to Invest in 2022

    Celebrity Backed NFT Collections to Invest in 2022

    April 24, 2022
  • Bored Ape Metaverse Launch Date set for April 30

    Bored Ape Metaverse Launch Date set for April 30

    April 24, 2022
  • Mutant Ape Yacht Club Hits 32 ETH All Time High Price Floor

    Mutant Ape Yacht Club Hits 32 ETH All Time High Price Floor

    April 22, 2022
  • Rare CryptoPunk #7756 sells for $3.2 million (1050 ETH)

    Rare CryptoPunk #7756 sells for $3.2 million (1050 ETH)

    April 22, 2022
  • About
  • Contact Us
  • Privacy & Policy
  • Sitemap
  • Terms of use

Copyright © 2018-2021 NJCEE. All Rights Reserved.