The first is that new financial instruments are the authors of financial bubbles. Usually prices are gone up in a bubble when people show an extremely positive attitude.
Economist david rosenberg told bloomberg he believes bitcoin is in a bubble and investors don t understand supply dynamics of the cryptocurrency.
Cryptocurrency a bubble. A january 2018 article by cbs cautioned about a cryptocurrency bubble and fraud citing the case of bitconnect a british company which received a cease and desist order from the texas state securities board. You speak to most people that are asking me to. For a bubble to exist a product has to be trading for vastly.
In part two cryptocurrency is a bubble revisited i argued you should skill up because. All things equal large assumption the product service that wins is the one that delivers the most value to its customer. In economics a bubble is when the cost of an asset is more than its intrinsic worth.
A bubble doesn t just keep bubbling 2013 and 2017 have seen similar drastic price action on arguably a more impressive scale. In my article cryptocurrency is a bubble i predicted it would crash. Well i was wrong it crashed twice.
With cryptocurrency there is no logic or much in the way of history to cling to. Bitcoin famous bubble chart one of the most popular charts that has been making the headlines first in the beginning of 2018 and then again in recent weeks was the mother of all bubbles chart from. In the day we would trade using gold.
Dot com bubble vs. A few things needs to be made clear. Bitconnect had promised very high monthly returns but hadn t registered with state securities regulators or given their office address.
Though the skyrocketing prices in the bygone years and many experts pinpointing cryptocurrency as a bubble it doesn t necessarily mean that it is. According to economists cryptocurrency is the mother of all bubbles. The cryptocurrency s intrinsic value is still unclear.
A comparison people will often make is comparing crypto to the dot com bubble which was the epic internet stocks bubble that took place from the mid 1990s to the early 2000s in the us. Commentators who say bitcoin is in a bubble don t know what they re talking about.