Why the Bitcoin Bubble May Burst Soon
The recent struggles for Bitcoin to get back to its 2017 peak (or even the $10,000 price point) have many in the finance world thinking the downward spiral has started already. Stefan Hofrichter, a leader of well-known money manager, Allianz Global Investors, agrees based on what has happened in the past with bubbles.
In historically comparing previous asset bubbles, the same signs are all there: monumental increase in value within a short timeframe, an unregulated market, and the creation of asset-related securities instruments (such as futures for Bitcoin).
For Bitcoin, there is no inherent value since the cryptocurrency isn't backed by a company or government, and the high fees and crazy price movements make it a poor choice in definition of currency since it can't maintain a set value.
The silver lining is that the technology behind Bitcoin, blockchain, is still seen as a huge gamechanger in the finance world and beyond.
Full article - CNBC