During the last couple of months, we have often heard economic analysts state that bitcoin is likely a bubble, about to burst, thus bringing forward a huge price decrease. Yet, this never actually happened, regardless of having the digital currency express its volatility during the last few weeks, with trading volumes going below the $3,999 threshold, and then rising back again to newer all-time highs.
However, it isn’t that hard to understand why numerous investors, bankers, finance enthusiasts, and of course market analysts tend to believe bitcoin is a bubble- because they’ve never seen anything like it. Since 2009, Bitcoin has managed to become the world’s most valuable currency, with no medium of exchange worth more than bitcoin is at this moment in time. When compared to traditional, fiat-based currencies, which have only gradually modified their value with time, it is understandable why bitcoin really took the world by storm.