There are still some question marks about whether bitcoin is in a bubble. But the speed of its price growth is already nearly unmatched.
The cryptocurrency has surged 162% in very volatile trading this year amid continued demand. But as the chart below illustrates, bitcoin’s longer-term rally by as much as 1,000% was swifter than homebuilder stocks in the lead up to the housing crash.
Jeffrey Kleintop, the chief global investment strategist at Charles Schwab, said that "the 10-year buildup is important to how embedded the bubble becomes and how much impact the bursting has on the economy and markets."
In other words, this is simply unprecedented. But arguably, a bitcoin crash probably won’t have the same ripple effect on the economy as some other assets would.
Billionaire Marc Cuban is among those who have said bitcoin prices are in a bubble. "When everyone is bragging about how easy they are making $=bubble," he tweeted.
Ethereum, another cryptocurrency, is up by more than 3,000% this year.
Is #bitcoin a bubble?
Do these things just happen faster these days? http://pic.twitter.com/uNXvmkt48k
— Jeffrey Kleintop (@JeffreyKleintop) June 29, 2017
from SAI http://read.bi/2tuKi7p