One hypothetical question:
Suppose SEC and gov. allowed all banks to trade on Bitcoin & crypto currencies with the money you put in your savings or checking accounts. How much do you think the banks would make daily percentage-wise?
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They would lose, by the time they finished dumping into the bitcoin bubble, they'd ride bitcoin down 50%. Just on the hype, bitcoin would soar to 100k, and then we would all ride it down to 50k when the event happened. They'd lose money. Bubbles are bubbles. The bitcoin bubble is just one where we are early to the party. This does not mean it is some magical investment mechanism where if the whole world dumps into it, it somehow never goes down. In 1929, they began believing the stock market could never crash, so they would borrow huge sums to invest and leverage up to 5X. Markets force crashes in the end.
I published a new article on bitconnect:
https://steemit.com/cryptocurrency/@ka82/can-bitconnect-s-trading-be-legitimate-sustainable
My point was that banks would be probably making the same if not more on trading in bitcoin as what bcc is doing right now!
Of course it will burst! I didn't say it can't be a bubble, it has most of the characters of bubble...but what if it gets to an inflection point that people actually start using it as medium of exchange rather than converting it to paper money? it's not stock after all the you should cash it to be able to use the money.
I agree with you.