that wont pop and correct by 50 only to enter a long bear market (that has happened before in stocks and Bitcoin and the threat is real). But the money becomes increasingly virtual. To offer a quick answer, Bitcoin is clearly bubbly, not unlike the stock market itself is, but over a shorter period of time. TIP : Bitcoin could very well not be in a bubble, but rather just seeing a meteoric (yet volatile) rise in price in which hard downturns should be viewed as corrections.
JPMorgan Chase, cEO, jamie Dimon created a bit of a stir in the market for bitcoin on Tuesday by claiming the cryptocurrency is a fraud and is in a valuation bubble that will burst. The price of Bitcoin has reached and passed 11,000, from 800 just one year ago (Figure 1). But as in the case of many prior breakthrough technologies, the transformation will indeed be disruptive and extremely important even if the first mover fails to survive. And not just bitcoin; ethereum, litecoin or whatever controversial and unimpressive initial coin offering (ICO) people are putting their money into. Robert Shiller in an interview with Quartz argues that bitcoin is currently the best example of irrational exuberance or speculative bubbles, made especially powerful by the idea that governments cant stop it or regulate it, which fits. Gold has become less of a hedge, partly because inflation has been low and partly because China and India dominated the gold market more than a few decades ago. If it crashes, it will fail to meet criteria.
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