The Bitcoin Bubble
We have had numerous asset bubbles in the past such as the tulip mania, the US housing bubble, and the dot-com bubble. The latest bubble is the Bitcoin bubble. All these asset classes rose in value due to irrational exuberance but the same characteristics were in place which drove up the prices. The price of Bitcoin has fallen 71% in the past year. All asset bubbles burst after a period of time. In this article we discuss the reasons for …