Is Bitcoin a bubble? It's a natural question to ask—especially after Bitcoin's price shot up from $12,000 to $15,000 this week.
So we decided to ask a couple of experts on bubbles what they thought: Brent Goldfarb is a business professor at the University of Maryland, and William Deringer is a historian at MIT. Both have done research on the history and economics of bubbles, and they talked to Ars by phone this week as Bitcoin continues its surge.
Both academics saw clear parallels between the bubbles they've studied and Bitcoin's current rally. Bubbles tend to be driven either by new technologies (like railroads in 1840s Britain or the Internet in the 1990s) or by new financial innovations (like the financial engineering that produced the 2008 financial crisis). Bitcoin, of course, is both a new technology and a major financial innovation.Ars Technica
Is Bitcoin a bubble? Here’s what two bubble experts told us
Timothy B. Lee
See also
The number of people with Coinbase accounts has gone from 5.5 million in January to 13.3 million at the end of NovemberCoinbase is having difficulty handling the volume.
Business Standard
Coinbase exchange at the heart of the bitcoin frenzy
Nathaniel Popper | NYT | San Francisco
also
High volatility.
Reuters
Bitcoin tumbles after dramatic gains ahead of futures launch
Also
Jesse's Café Américain
Peak Monetary Goofiness: One Thousand People Own 40% of Bitcoin Market
Jesse
Related
Business Insider
The first bitcoin futures depend on trading at the Winklevoss twins' tiny exchange — and that's a problem
Related
Business Insider
The first bitcoin futures depend on trading at the Winklevoss twins' tiny exchange — and that's a problem
Frank Chaparro
