You can’t escape hearing about its meteoric rise over the past year, accelerating in the last month, or how its underlying technology is going to takeover the world.
Well now it seems the digital currency has earned another distinction: Biggest Bubble in History.
“One month ago, a chart from Convoy Investments went viral for showing that among all of the world’s most famous asset bubbles, bitcoin was only lagging the infamous 17th century “Tulip Mania.”
One month later, the price of bitcoin has exploded even higher, and so it is time to refresh where in the global bubble race bitcoin now stands, and also whether it has finally surpassed “Tulips.”
The Tulip Bubble is a textbook example of euphoric emotion overtaking investing reason. It is a speculative fervor. The rise of Bitcoin is full of emotion, and now it has eclipsed the most famous bubble in history.
“Conveniently, overnight the former Bridgewater analysts Howard Wang and Robert Wu who make up Convoy, released the answer in the form of an updated version of their asset bubble chart. In the new commentary, Wang writes that the Bitcoin prices have again more than doubled since the last update, and “its price has now gone up over 17 times this year, 64 times over the last three years and superseded that of the Dutch Tulip’s climb over the same time frame.”
That’s right: as of this moment it is official that bitcoin is now the biggest bubble in history, having surpassed the Tulip Mania of 1634-1637.
And with that we can say that crypto pioneer Mike Novogratz was right once again when he said that “This is going to be the biggest bubble of our lifetimes.” Which, of course, does not stop him from investing hundreds of millions in the space: when conceding that cryptos are the biggest bubble ever, “Novo” also said he expects bitcoin to hit $40,000 and ethereum to triple to $1,500.
“Bitcoin could be at $40,000 at the end of 2018. It easily could,” Novogratz said Monday on CNBC’s “Fast Money.” “Ethereum, which I think just touched $500 or is getting close, could be triple where it is as well.””
Speculating on Bitcoin here is not for the faint of heart, to say the least. It may very well become ubiquitous, but that doesn’t mean these prices will continue into the stratosphere and beyond.
“Trees don’t grow to the sky,” goes the proverb, suggesting there are natural limits to growth. Whether Bitcoin has reached that limit remains to be seen.
What are certainly seeing, though, is the biggest and fastest “bubble” in the history of the world.