Bitcoin has been resembled to the spread of an infectious disease according to a group of analysts at Barclays. They believe that current slump in cryptocurrency has come due to the immunity developed by the buyers.
The analysts have compared many models to come to a conclusion that Bitcoin has peaked, that is, reached a point of maximum growth according to studies based on epidemiology. They have divided the Bitcoin users and investors into three separate groups: Susceptible, infected and immune. The assumptions which come are the infections spread by word of mouth. Joseph Abate, an analyst at Barclays continued the statement by adding that with the number of increasing asset holders, the share of users that are potential sellers also increases. This leads to prices to peak and with jolts to large supply population which increases the number of sellers as compared to buyers.
Tweeters on other hand were apprehensive, Philip Sim tweeted:
“Think about it. Why would banks be so hostile towards crypto currencies? Because they would be obsolete.”
While Temokles tweeted that:
“here’s a difference: There’s a group of unknown size that will never become immune, and that group stays pretty constant rather than moving around like it does with a flu. They’re not just passive carriers.”
Analysts further wrote about the immunity threshold by stating that there is a point when sufficient portion of the population becomes immune, secondary infections stop occurring. According to Barclays, when the population of the asset holders increases, ‘the share of the population available to become new buyers — the potential ‘host’ population — falls, while the share of the population that are potential sellers (‘recoveries’) increases’.
They have predicted that Bitcoin will never recover and it may never return to its peak of $20,000 which it held in December. They believe that speculative froth phase of the cryptocurrency investment has passed.
A Redditor commented on the updates by saying:
“This is dumb. The stock market just crashed a bunch of times, people lost tons of money. Were they all naive and “infected” rubes?”
Subscribe to AMBCrypto’s Newsletter
Bitcoin Cash [BCH] developers close to adding privacy to BCH transactions
Bitcoin [BTC] and other cryptocurrencies discussed by Nouriel Roubini; says I have no position on BTC
Bitcoin [BTC] is nearly ‘mature’ enough to take on Forex markets, finds Poland-based research
Bitcoin Cash [BCH] and Cardano [ADA] prices hike but remain the biggest losers of the week
Cardano [ADA] Founder reveals future plans for the Cardano project
Ripple partner Santander to adopt SWIFT GPI: What does it mean for XRP-powered xRapid?
Ethereum [ETH]’s Co-Founder Vitalik Buterin: Massive amount has changed in the community over the past 15 months
Tron [TRX] and Binance sailing together; NASDAQ mention indicates adoption
Ripple partner Santander goes live with SWIFT’s Global Payments Innovation
Bitfinex pauses USD deposits after Bitcoin [BTC] drops: $2.3 billion at stake as insolvency rumors threaten USDT legitimacy
Tron [TRX/USD] Technical Analysis: The bulls have charged attack on the bear
Ripple, XRP, and the SWIFT partnership: Will it fit together as a possibility, or is it “idle speculation”?
Bitcoin [BTC] is not going to disappear, but Ethereum [ETH], XRP and others are “going bust”, says Roubini
Bitcoin [BTC] developer says “EOS is a scam” and the platform would not benefit new developers