Cryptocurrencies
Bitcoin Is Unlike Any Other Bubble We’ve Seen So Far
- Man Group compares Bitcoin to Prometheus in Greek mythology
- Volatility likely part of price-discovery process, firm says
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While the jury is still out on whether Bitcoin is a bubble, one thing is certain: it’s unlike any other bubble we’ve seen.
Previous speculative asset-inflation episodes were either a one-off, like tulip mania in the 17th century, or the boom-doom cycle took many years, like gold. Bitcoin, by comparison, has survived three peak-to-trough drawdowns of over 80% in less than 10 years. The cryptocurrency surged past $40,000 last week to set an all time high. It has fallen more than 15% since then.