Wall street grows ever more certain Bitcoin is a bubble. I can't even say they're wrong. Flirting with $6000 per coin and low economic utility? For as dumb as Jamie Dimon sounds every time he says anything about Bitcoin, the tulip bubble analogy looks less and less inappropriate all the time.
In a note to clients published on Thursday, analysts at UBS took a long look at Bitcoin, cryptocurrencies, and the blockchain technology that underwrites this whole enterprise.
Looking only at pricing, UBS said that, a twenty-fold increase in bitcoin prices in just two years, and an absence of any fundamental economic backing, cryptocurrency prices are almost certainly a bubble.
Blockchain utility doesn't make crypto not a bubble. That'll be important to remember for people buying now expecting to make big gains at this cost basis, and there's real risk there.
Bitcoin bubbles at times. There are two powerful things that affect people in this market and that is fear and greed. Those who havent invested earlier will always be afraid that they will miss out on it and at the end they will usually end up with investing at any price and losing their money. While those that invested at cheaper rate will he greedy and not sell cause they believe that the price will continue to bubble, thats really stupid cause at the end they will all lose.