Bitcoin bubble
I am doing a research on bitcoin, and wondering whether or not it is a bubble in the market. My question is how does one go about detecting a bubble in the bitcoin market? Which indicators are interesting to look at? How can this be tested?
Well for one it's rising way too fast. First and obvious red flag. Second, the recent decision to not fork brings up the question that if it's supposed to be not centralized, why are a handful of people making these decisions? I thought that was the strength of cryptocurrencies in itself that it wouldn't be a vehicle for regulators to throw their power hammers on.
In my opinion, it's not the cryptocurrencies that are the investment to make, but the underlying blockchain technology. That's here to stay and will be implemented in a lot more ways and in a broad range of industries.
When value drivers for an asset cease to be tangible and instead become things like hope, confidence, and exuberance then said asset (or asset class) might be in a bubble. It's less of a BTC bubble and more of a "cryptocurrency" bubble.
Side note: whatever cryptocurrency or blockchain tech JPM is using is probably what you want to be holding, if you even want to be holding something like this.
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