A bubble is a type of investing phenomenon in which investors puts high demand on a stock that they drive the price beyond its actual worth. Soon after price become high it crashes making bubble to brust.
A crash is a significant drop in the total value of the market.
Lets take an example of Bitcoin. The First bubble was seen in May of 2011, hit its all-time high of $31.91 before crashing down to $10.25.
The cause of the bubble was widly believed to be due to the Silk Road marketplace gaining popularity.
In the year 2013, we saw two bitcoin bubble.
first in april, when the price climb to the new high of $266 and soon chashed to $60. This was the time when Bitcoin version 0.8 was released and the internet archive atarted accepting bitcoin.
Second in November, when the price of bitcoin went to the all time high of $1,242(on november of 28,2013).
Then it crash but did not fall below $400.
In january of 2017 the price of Bitcoin went fron $767(approx)to $2,990 in the end of may,and it is fluctuating between $2200 to $2800.Rising the hype of cryptocurrency in the market and social media which causing new invester to join.
Many news outlets believe that the bitcoin bubble is going to brust, and its going to happen soon.If is happen a lot of people are going to lose their money.
Thanks for Reading
Please leave comment and Follow
