Is Bitcoin the biggest bubble really? Or is it media misrepresenting the facts? Let’s do some comparing and find out whether the claims that “Bitcoin is the greatest bubble in history” are true.
12 April, AtoZForex – This week saw a lot of media reports about the alleged “Bitcoin bubble” and the speculation of whether or not it is “popping.” Apparently, this has spurred inaccurate claims about the size of the bubble. Moreover, media reports have again compared the Bitcoin growth to that of gold and Dutch tulips.
Is Bitcoin the biggest bubble? Media Misrepresents Facts
The Bank of America (BoA) has been tracking the “greatest asset price bubbles in history.” These included Bitcoin, tulips, the Mississippi Company, the South Sea company, gold, and other. The bank has concluded that Bitcoin is the “greatest bubble in history,” according to the recent online reports. However, some of the experts believe that this claim is apparently untrue. This is applicable to the history of Bitcoin and history of bubbles.
The cryptocurrency pioneer has dropped more than 65 percent following its spike to $20,000 in December 2017. As of now, the cryptocurrency is trading at $6,846.
Some of the other historical price bubbles have seen almost 80 percent falls, just like the dot com bubble in 2002. The Dutch tulip bubble has experienced a 99 percent drop, according to the former UCLA economics professor Earl A. Thompson. This accounts for 34 percent more than Bitcoin’s slide.
Following on this, Bitcoin’s price has previously seen even more volatility than 65 percent drop earlier. In the middle of June 2011 throughout November 2011, Bitcoin price has dropped from $32 to $2 – which is a 94 percent drop. Then, in April 2014, this cryptocurrency has experienced a fall in price, which stood at 83 percent, while in November 2013, Bitcoin has dipped 87 percent.
Therefore, while comparing the previous Bitcoin drops to the current “bubble” the difference is obvious.
Bitcoin Death – too many times?
In addition, media reports have been mentioning “Bitcoin death” a lot of times recently. Yet, as per the experts’ opinion, BTC has died already 278 times so far, while the news outlets continuously proclaiming every Bitcoin price drop a “death.”
Bitcoin “HODLer” Any Hoffman has tweeted earlier this month, questioning the “bubble” label for Bitcoin when compared to the price assessment of tech companies. He has stated:
“For those calling #Bitcoin a “bubble,” is $100 billion really a “bubble-like” valuation for the most transformative financial invention in history? I mean, a dying tech dinosaur like IBM is $140 billion, and the anachronistic dead man walking AT&T is $230 billion!”
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