Are we in a cripto bubble or no?
So first what is a bubble?
An economic bubble or asset bubble (sometimes also referred to as a speculative bubble, a market bubble, a price bubble, a financial bubble, a speculative mania, or a balloon) is traded in an asset at a price or price range that strongly exceeds the asset's intrinsic value.
Because it is often difficult to observe intrinsic values in real-life markets, bubbles are often conclusively identified only in retrospect, once a sudden drop in prices has occurred. Such a drop is known as a crash or a bubble burst. Both the boom and the burst phases of the bubble are examples of a positive feedback mechanism, in contrast to the negative feedback mechanism that determines the equilibrium price under normal market circumstances. Prices in an economic bubble can fluctuate erratically, and become impossible to predict from supply and demand alone.
Hear is also a video on that topic concerning cripto bubble:
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I do not think we are currently in a bubble. I do think some, but not all, cryptocurrencies are a little overpriced right now. In general I think we have reached the point where cryptocurrencies are going mainstream. This is in my opinion where the money comes from; market demand. And I hope I am right otherwise we'll take a hit
I also don't think we are in a bubble. Beacuse there is so much more things criptocurrency can change :)
There could be some occasional bubbles though... Watch out! :)
Hope not :)
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