Is the Bitcoin Bubble Going to Pop?
There is a new film in town called “The Big Short” about bitcoin and the crypto market. It follows Michael Burry, the character played by Christian Bale. He believes that the crypto bubble will eventually burst. However, he does not believe that bitcoin will be the one to lose money. This is because it has already soared fivefold in the past year, while many other crypto projects have skyrocketed even higher. As Wall Street institutions begin to tiptoe into the cryptocurrency arena, it’s possible that this booming market will crash. Moreover, bitcoin has already shot up nearly 50 percent in the last two weeks.
There is a risk of crypto bubble popping
There is also a risk of a crypto bubble popping. The market is currently in a state of mania. This is because it bears many hallmarks of a mania, including the promise of infinite revenues. It is likely that some governments do not want cryptocurrencies to threaten their currencies, and have banned them. Some governments have banned the use of digital currencies, including Bitcoin. Those countries are effectively banning the entire industry.
In late December 2017, the price of Bitcoin hit $USD 19,000 per coin. Its value fell to below the bottom trading range of March, wiping out more than half of its value in a matter of days. While this was a massive loss for investors, the collapse of the crypto market caused global economies to slow down, causing some to fear that the price of the digital currency might not last. In addition, it has become a favorite of cybercriminals and dark-web transactions, which have hurt the value of crypto assets.