In 2014, many scientists and journalists began to argue that some cryptocurrencies show signs of an economic bubble . [one]
Bitcoin
Well-known economists often called bitcoin a speculative bubble. In particular, the American economist , the former head of the Fed , Alan Greenspan called bitcoin a bubble with no inherent currency value. [2] Australian economist John Quiggin has devoted an entire article to this subject entitled “The Bitcoin Bubble and the Bad Hypothesis”. [3] Nobel laureate, economist scientist, Robert Schiller claims that bitcoin shows many similar characteristics to the economic bubble. [one]
In 2013, journalist Matthew Boesler refuted public opinion and stated that the rapid growth of bitcoin was due to normal economic processes [4] Another journalist Timothy Bee Lee wrote in a note to the Washington Post that a sharp rise and fall in price is not a definition economic bubble. [5] On March 14, 2014, businessman Warren Buffett, in the Squawk Box television program, called bitcoin a “mirage” and advised him to “stay away from it.” [6] Financial analyst at Finam Investment Holding Leonid Delitsyn also expressed his opinion on the Bitcoin bubble. According to him, a similar situation with significant price spikes was with the dot-com bubble, and the bubble should burst when new cash injections end. [7] On December 14, 2017, The Guardian published an article on “The Bubble? We Still Don't Know How to Evaluate Bitcoin,” which mentions the opinion of the head of the Central Bank of Australia regarding bitcoin. In his opinion, Bitcoin cannot be unambiguously considered a bubble. [eight]
Altcoins
Jacob Eliosoff, manager of the Crypto Fund, noted that the rapid rise in the value of all cryptocurrencies can form a bubble. [9] Financial experts at the Goldman Sachs investment bank, having analyzed the bitcoin and ether rates, as well as the value of shares of companies that announced the introduction of blockchain technology in their business, concluded that a huge bubble has formed around the crypto industry. The bank’s specialists noted that despite the crypto fever, the global economy and the US economy in particular are protected from collapse due to the cryptocurrency bubble, since the cryptocurrency market in the United States currently makes up only 3.2% of the country's GDP, while mentioning the figures for the dot-com bubble - 101% of GDP. [ten]
Notes
- ↑ 1 2 Shiller, Robert . In Search of a Stable Electronic Currency , New York Times (March 1, 2014). Archived October 24, 2014. Date of appeal October 31, 2014.
- ↑ Greenspan Says Bitcoin a Bubble Without Intrinsic Currency Value
- ↑ The Bitcoin Bubble and a Bad Hypothesis
- ↑ ANALYST: The Rise Of Bitcoin Teaches A Tremendous Lesson About Global Economics
- ↑ When will the people who called Bitcoin a bubble admit they were wrong?
- ↑ Buffett blasts bitcoin as 'mirage': 'Stay away!'
- ↑ A financial analyst said when the “bubble” of bitcoin will burst
- ↑ A bubble? We don't even know how to value Bitcoin
- ↑ $ 25 billion in 30 days: a new cryptocurrency bubble?
- ↑ Goldman Sachs: Bitcoin bubble surpasses dot-com boom and tulip mania