I came across this article from businessinsider about bitcoin being in a bubble.
A bubble happens when the price of the asset goes up without any fundamental explanation.
Why is the price of bitcoin and ethereum going up?
According to business insider bitcoin 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.
Below is a graph explaining about the characteristics of bubble which is a price increase of 1000% or more during a 10 year period.
Well, is it cryptoccurrency in a bubble or not? That is hard to tell. To be honest, it is quite different from the other types. If we look at the graph that I showed you, then we may say that YES, it is probably in a bubble.
This is a commentary article from the business m article.