Friday, November 23, 2018

Yup, looks like bitcoin was indeed a bubble

I have written a few posts about bitcoins and cryptocurrencies in general, the last couple of these being about a year ago, when bitcoin prices were going through the roof for no apparent reason that I could see, other than that people were in get-rich-quick mode and doing their best to milk the latest bubble.
I did say at the time that cryptocurrencies looked to me like the archetypal economic bubble, accruing huge value very quickly based on unjustifiable forecasts, and without having anything physical to show for it.
Well, guess what? Bitcoin has lost about 75% of its value since then, 25% in the last week alone. Other cryptocurrencies have lost even more. It seems like many people have finally realized that the Emperor does indeed have no clothes. I'm sure some people did make good money, if they got out early enough, but probably many more have lost a lot of dough. I don't say this purely out of schadenfreude, but I did tell you.

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