Tuesday, November 28, 2017

Bitcoin and The Internet Bubble in Perspective

 John Authers writes:
Bitcoin nearly broke the $10,000 barrier on Monday, having only broken $2,000 for the first time earlier this year. This is quite something, but still, claims that the bitcoin boom of the past year is in some way a repeat of the Nasdaq Bubble which finally popped in March 2000 are well wide of the mark. Here is a comparison of the two:

This is not just a short-term phenomenon. Bitcoin may have gone into orbit this year, but you may recall that many of us thought that bitcoin prices were crazy a year ago. Its average annual real return since people started trading it in 2010 is 411 per cent. This is unlike anything seen in any stock market in the modern era.

UPDATE: Who is Buying Bitcoin and When Will They Stop?


  1. Compare the scale of fed money printing prior to each bubble?

    My general take on bitcoin is that the tech is useful and innovative, but it's true believers are naïve about the game they're playing. It reminds me of this scene from Starship Troopers.