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UK Supreme Court judge warns of cryptocurrency bubble … nearly a year after it burst

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28

It looks like there won’t be a SupremeCourtCoin

A Supreme Court judge has raised a warning that cryptocurrencies “risk creating bubbles” — ten months after Bitcoin began its plunge from a December 2017 high of nearly $20,000 to below $7,000, a level it has remained at more or less since February this year.

Writing in The Times this morning, in a piece extracted from a speech he delivered last week at the East China University of Political Science and Law in Shanghai, Lord Hodge echoed alarm calls that were being made this time last year by mainstream financial commenters about “irrational exuberance” in the cryptocurrency space.

Hodge’s words of caution come too late for the hordes of amateur investors who lost fortunes on Bitcoin, Ethereum, Litecoin, XRP and hundreds of other cryptocurrencies that sprung up in the mania last year. Many bought at the top of the market in December and January and have since lost big. For example, a purchaser of Ethereum at its January 15 peak of $1,320.73 would now find their investment worth just $197.17.

Of course, it’s possible that Hodge may have one eye on the future, with some in the crypto space talking lately of a “Bitcoin coil” that could unwind violently following its recent period of stability.

Indeed Hodge does seem aware that he is not exactly early to this party, mentioning elsewhere in his speech that “cryptocurrency rose in value on a speculative bubble from about US $1,000 to over US $19,000 before falling back to its price at the time of writing this lecture of about US $6,400”. He added: “Such a performance does not bode well for an unregulated cryptocurrency in a permissionless system to be an effective unit of account or a store of value.”

Hodge became a Supreme Court judge in October 2013, after a career at the Scottish bar where we was made a QC in 1996. He studied law at the universities of Edinburgh and Cambridge.

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28 Comments

Anonymous

Wonder who paid for that trip to Shanghai?

(2)(0)

Anonymous

The tax payer I imagine. It does beg the question why the government is sending judges on jollies to China to talk about things they’re clearly not experts on.

(9)(0)

Anonymous

Expect Lord Hodge to replace Baroness Hale as the next President if the UKSC in a political bid to get Scotland to remain in the UK and not to vote for independence.

Hodge will eventually be replaced as President by Briggs.

(1)(0)

Anonymous

Having Scottish PMs didn’t placate the lunatic independence fans – lol @ idea a Scottish SC Pres would.

(0)(0)

Anonymous

This post has been removed because it breached Legal Cheek’s comments policy.

(2)(0)

Anonymous

You clearly nothing of blockchain and cryptocurrencies. It volition, maybe check the charts, learn about how it works. Not even close to mass adoptions , and bubble territory hasn’t even begun.

What scares lawyers is smart contracts. Self executing , and decentralised and unhackable. No need for a human.

Crypto and Blockchain is here to stay. National governments are developing their own, all round the world, I mean the payment systems only just coming to market

Maybe look up something other than bitcoin. There aren’t thousands of crypto currencies out there. Bitcoin is kinda old news these day.

(10)(10)

Anonymous

Thanks for clarifying Lord Hodge

(9)(0)

Anonymous

Reading this has brought on a migraine.

(10)(5)

Anonymous

Seconded.

Bet you 0.1 bitcoin that Hodge hasn’t read anything on cryptocurrency beyond the FT, and that’s being generous.

There will be a huge bubble. That bubble hasn’t yet arrived. It’s only in the last couple of months that solid news of institutional investment and safe storage for institutions has begun to emerge.

(6)(1)

Nocoiner

The cryptocurrency bubble has happened. I doubt very much Bitcoin will go anywhere near $20,000 for a long, long time. As for the other ‘shitcoins’, most are scams that were temporarily inflated by unregulated ICOs, which are now unwinding with very painful consequences.

(3)(5)

Anonymous

Enjoy being poor

(2)(0)

Anonymous

Enjoy hodling until your coins are back anywhere near the price you bought them for

Anonymous

Bought in early 2017. Still way up on original purchase price, and ready for the next rocket.

Thx for your concern. Enjoy being a pleb.

Anonymous

lol – you didn’t sell. Good luck with that next rocket

Anonymous

Enjoy zone 4 life

Anonymous

Enjoy the riches that doubtless await you

Anonymous

Whilst you have been giving it the tit-for-tat I’ve done both your mums.

Anonymous

Cryptocurrencies and specifically the markets do need proper regulation.

Ironically, it’s only then that they will begin to truly shoot up, when instructions and other large scale investors feel suitably secure in their investment.

(0)(0)

Anonymous

But, in the meantime, ‘unsophisticated investors’ can continue to throw all their money away in one of any number of bookmakers on their local high street or via a few presses of a touch screen from the comfort of their own homes… and that’s OK.

(0)(0)

Anonymous

Are proposing banning sports gambling?

I’m all for banning tv adverts – banning altogether seems extreme.

(0)(0)

Anonymous

Unsophisticated gamblers do throw their money away. Some of us draw a profit though.

(1)(1)

Anonymous

What does Lord Hodge think of Initiative Q?

(1)(0)

Lord Hodge

BUY!!! 🤑

(0)(0)

Anonymous

THEY JUST SHUT DOWN THE COMMENTS ON THE LC EVENT “Future of Legal Education and Training Conference 2019”

HMMMMMM???????

(5)(0)

Anonymous

Alex clearly can’t take criticism for trying to charge £200 for his ego event.

(6)(0)

Anonymous

Which will fit into his constant agenda of the legal profession being outdated and dying.

(1)(0)

Anonymous

If you feed a man bait, he will attract the fish. If you give the man a bait, he will eat the bait.

(2)(1)

Gary

Fishes all round then?

(0)(0)

Comments are closed.

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