Bitcoin Has Cometh And Goeth: How Does BTC’s Rise And Fall Compare To World Famous Bubbles
How Does Bitcoin Compare To The World’s Famous Bubbles
Bitcoin Is A Bubble!
The mainstream media and experts have relentlessly called Bitcoin a bubble that is to bust some day. Well, it’s been 10 years now, and it is still very much here and going stronger every passing day.
But if we have to compare it with the other famous bubbles of all time, where exactly the leading cryptocurrency stands?
Dutch Tulip Bubble
One of the most famous market bubbles of all time, Dutch Tulip bulb market occurred in the early 1600s when the speculation drove their prices to the extremes. “Tulipmania” has become a metaphor that is used to refer to the large economic bubbles where prices change their course from what is their intrinsic values.
“Nocoiners' favorite bubble, Dutch tulips, lasted for just over 2 years in which the price appreciated around 60-fold, then crashed lower than its original price,” stated Ammous.
Stock Market Bubble
The Wall Street crash of 1929 or Great Crash occurred on October 24, 1929 (Black Friday) when the prices of shares collapsed on New York Stock Exchange. It was the most devastating stock market crash in the US history which followed the London Stock Exchange’s crash of September that signaled the beginning of the Great Depression that lasted 12-years and affected all western industrialized countries.
“The 1929 stock market bubble saw a 6-fold increase over a decade, followed by a crash back to around the original price. For more on this, read Rothbard's America's Great Depression.”
In early 2006, over half of the US states, Housing prices peaked due to the real estate bubble. “The most significant risk to our economy,” is how the US Secretary of the Treasury referred the bursting of this housing bubble, in October 2007.
Increased foreclosures rates in 2006 among the US homeowners led to the credit crisis that has been an important cause of the 2008 recession.
“The famous housing bubble saw housing prices triple in around 20 years, and then lose around 40% over a few years.”
After the recession of 2008, Bitcoin has been created that is now existing for over 10 years. In its decade long existence, it has already experienced four bull cycles that saw bitcoin price rising to all-time highs (ATH).
“Bitcoin appreciated to 200,000,000% of its value in nine years, then crashed back down all the way to around a 30,000,000% rise.”
Talking about the Bitcoin Bubble, Ammous says it is not only comparable to other bubbles but also to the most successful innovators and companies like Microsoft, Walmart, Netflix, and Nike among others, indicating “nothing has ever risen as fast and as much as Bitcoin has risen.”
As for the future of Bitcoin, the cryptocurrency space has been growing rapidly with thousands of other coins having entered the market but despite there is no guarantee of Bitcoin to see another peak as it could still crash and “not recover in 20 years,” the industry is confident that a new high will be coming that is expected to leave the $20,000 peak way behind.