Why bitcoin checks all the boxes of a bubble
Business Insider CEO Henry Blodget discusses the meteoric rise of bitcoin. He references a recent research note published by former Merrill Lynch chief investment strategist Richard Bernstein, who refers to the cryptocurrency as "bitcon." Blodget walks through Bernstein's assertion the bitcoin meets all five characteristics of a bubble: available liquidity, leverage, democratization, new issues and turnover. The good news for bitcoin speculators is that Bernstein thinks the rally will continue until the Fed siphons off liquidity.
Business Insider editor-at-large Sara Silverstein, who is generally a bitcoin enthusiast, recognizes that it could be a bubble, but nothing like past catastrophic ones like the tulip bubble. She says it could end up drawing some parallels to the tech bubble, however, because after that market blowup, tech remained a large asset class and a big part of the market. Blodget then points out that there's no real way to value bitcoin, and that efforts to do so are absurd. In the near to medium term, Silverstein still sees lots of money flowing into bitcoin and the cryptocurrency space at large.
Get the latest Bitcoin price here.>>
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Catan adds climate change to the latest edition of the world-famous board game
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- JNK India IPO allotment – How to check allotment, GMP, listing date and more
- Indian Army unveils selfie point at Hombotingla Pass ahead of 25th anniversary of Kargil Vijay Diwas