Could a Bitcoin crash have larger economic effects - Inside Subprime 12

Could a Bitcoin crash have larger economic effects - Inside Subprime 12/20/17 Could a Bitcoin crash have larger economic effects? Could a Bitcoin crash have larger economic effects?Inside Subprime: December 20, 2017By Andrew TavinBitcoin is super hot right now, both literally and figuratively. With every Bitcoin transaction using as much energy as the average American home  goes through  in a week, and  its value soaring by the day, it seems everyone and their mom is now looking to get a piece of this cryptocurrency. At the time of this writing, the value of one Bitcoin is sitting pretty at $16,500, a far cry from the $700 it was worth in January of this year. But this price is highly volatile. This morning, it was nearly $19,000, and who knows where it will be by dinnertime. What goes up must inevitably come down, and many watching the chart rise  and fall in real time have begun to wonder whether a serious crash is on the horizon.  So what would happen if (or more probably, when) Bitcoin prices take a sudden and massive plummet?  According to The U.S. Financial Stability Oversight Board, not much.  The  watch dog group recently published a new report on future financial challenges,  and found that a Bitcoin  crash  is  unlikely to affect the average Americans finances at all. Unlike the  subprime mortgage crisis if the late 2000s, a Bitcoin price drip wont hurt the economy overall because Bitcoin doesnt have even close to the buy-in that subprime lending did before the housing bubble burst. While everyone from giant banks to local creditors and insurance companies bought into subprime mortgages in some way, Bitcoin has relatively few investors.It is possible that there could be a more serious effect if big institutions, like Goldman Sachs, start investing heavily in Bitcoin. But  at the moment they’re holding back and leaving Bitcoin mining to individual investors. Axios  values the Bitcoin industry at around $250 billion, and while that is a big number, it pales in comparison with the tens of trillions the subprime lending market was worth when it crashed in 2008. If you’re looking for something to worry about, your anxiety will be much better spent focusing in on the student loan bubble thats set to fail, or even considering the very real possibility of another subprime mortgage crisis. You could also stop pacing your house refreshing Twitter every few minutes and  try and do something productive, like create an emergency fund, just in case. After all, maybe Bitcoin won’t crash at all. Maybe it’ll just  get more and more valuable until it becomes the basis of the entire global economy.But probably not.Check out these related pages and articles from OppLoans:Did wealthy house-flippers cause the mortgage crisis? A new study says yesHouse tax bill would cut taxes for corporations, strip deductions for poor and middle classVisit OppLoans on  YouTube  |  Facebook  |  Twitter  |  LinkedIn