Forums Economics Assignment Help Is bitcoin a bubble?

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    Is bitcoin a bubble?



    A cryptocurrency is a digital asset designed to work as a medium of exchange that uses cryptography to secures its transactions. Bitcoin, created in 2009, was the first decentralised cryptocurrency. Since then, numerous other cryptocurrencies have been created. These are frequently called altcoins.

    If you have turned any financial new channels over last few weeks you have likely heard some talking referring to bitcoin and altcoin as one giant bubble, ready to burst.

    A bubble in cryptocurrency market refers to an economic cycle, created by a surge in assets prices unwarranted by the fundamentals of asset and driven by exuberant market behaviour. When no more investors are willing to buy at an elevated price, a massive sell-off occurs, causing the bubble to deflate.

    Nowadays, it has become a burning issue in the economic and stock markets. According to some experts, bitcoin is a giant bubble which can burst anytime leaving investors bare hand.
    But for some experts, bitcoin is special. The supply of bitcoin is limited to 21 million units only and this makes bitcoin a scare asset. When things are scared and people want those things, their value increases. But this does not mean bitcoin is guaranteed to succeed. The price could be affected anytime.

    Hence, at we can conclude that, if people want to call bitcoin a bubble then they have to explain why exactly it is. If bitcoin is really a bubble then it will be the largest one which humankind can ever witness.

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