Bitcoin’s meteoric divorce bitcoin mining this year has been astonishing, captivating traders across the globe. Please enter your email address!
This once-obscure cryptocurrency has exploded into the world’s hottest market. With fortunes being won on paper, everyone is talking about bitcoin. But with its price shooting parabolic, unfortunately this wild ride has all the hallmarks of a classic popular speculative mania. And those all end badly, totally collapsing. These are very-rare events where some market blasts higher so radically that it captures the popular imagination.
Manias are certainly nothing new, they have been periodically erupting for many centuries if not millennia. I’ve read it several times in my life, starting back in college. Mackay’s title is brilliant, perfectly summing up manias. Objectively, this year’s extreme bitcoin action definitely fits that bill. I say this as a lifelong student of the markets. Like the objects of lust in past popular manias, bitcoin and its underlying blockchain technology have real potential to change the world. But that doesn’t justify its price.