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Is Bitcoin a bubble or not?

News

There’s currently no shortage of articles out there asking whether Bitcoin is currently in the midst of a speculative bubble. Lazy comparisons with the Dutch tulip craze of the 1600s are made, as commentators seek to justify the rapid ascent in prices over the past few years. On the other side of the equation, Bitcoin advocates can be heard saying “this is just the beginning.”’

This article is not the place to say whether Bitcoin is in the middle of a bubble or not. When looking at the price of Bitcoin for trading or investment purposes, people need to make their own mind up. Outlined below are two philosophical views on whether Bitcoin is in a bubble or not. Consider both when deciding where you stand on the debate.

Yes, Bitcoin is a bubble

Bitcoin rose over 1,000% over the course of 2017 alone, faster than any other asset. Several respected commentators, among them Jamie Dimon, the CEO of JPMorgan Chase, have said that Bitcoin is a bubble and that investors should beware. The number of casual speculators taking profit on Bitcoin’s price only lends to Dimon’s opinion.

No, Bitcoin is not a bubble

The fact that Bitcoin rose 1,000% in a few short months reflects a confidence in its future, rather than irrational exuberance. During the dot-com bubble and subsequent crash at the beginning of the 21st century, Amazon’s price rose to seemingly unjustifiable levels before falling again. At its height its stock was valued at less than $100; now Amazon is valued at more than $1,200 and few people are calling it a bubble.

Oh, and Jamie Dimon started out by saying that Bitcoin was a fraud before later retracing that statement and saying that he regretted it.

Jacob Lucas

Jacob Lucas

Jacob has been active in the cryptocurrency markets since 2010, specializing in Bitcoin. He received education as Certified public accountant, specializing in taxes and cost management. Looking for alternative sources of income due to some personal struggles Jacob discovered Bitcoin 2010, showing some commitment and first to learn and get all the basics. Jacob made his fists investment in bitcoin in 2011 and has been successful in the field. Writing in the field is part of Jacob’s commitment to share knowledge with others.

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