Bitcoin Bubble Officially the Largest in Human History

Its supporters are loath to hear the word, but an increasing number of economic analysts are tracking what is known as the Bitcoin Bubble. The idea went viral last month when Convoy Investments formulated a chart tracking the relative worth of various economic bubbles in human history, stretching back hundreds of years, and marked out the largest and, frequently, most destructive. One month later and Bitcoin’s value has continued to increase, and Convoy has released an updated chart depicting the relative positions again.

Bitcoin is now worth 64 times what it was three years ago, officially passing “Tulip Mania” of the 17th century. Howard Wang and Robert Wu, who are the principals of Convoy, highlighted that Bitcoin has near doubled since the chart made last month. Strikingly, it has grown at five times the rate of the infamous South Seas bubble of the 18th century, a crash so enormous the government of the United Kingdom still pays debt on the catastrophe.

There are other words of warning, things like Bitcoin Futures and Derivatives have popped up recently, warning signs for most long-term investors.

There is some wiggleroom. Mike Novogratz, an expert pioneer in crypto-currencies, has stated he believes Bitcoin to easily reach $40,000 before it finally bursts. That’s still a fair amount to grow from its current position just under $20,000, and enough time for the squeamish to save their skins. All that remains hidden is how far the crash will fall.

Coinbase Experiences Outages, Suspends Ethereum and Litecoin Trading Temporarily

Coinbase is one of the leading platforms for trading Bitcoin. It also lets users trade Ethereum and Litecoin. On Tuesday, they announced that trading for Ethereum and Litecoin was temporarily disabled. This happened in the morning, Eastern time. A few hours later, the issue was resolved, but not for long. A short time after 2 p.m., Coinbase again announced that trading for Ethereum was disabled. This time, it only took 45 minutes until the issue was resolved.

Coinbase said in a statement that their site was experiencing a record amount of traffic. This was the cause of the outages, and there may be additional outages in the future.

Bitcoin and Ethereum have been rising at tremendous rates. Bitcoin rose 5% to a record high of over $17,000. Ethereum rose 23 percent to a record high of well over $600. That is 7,500 percent higher than the price that it started at.

Cryptocurrencies, in general, have been experiencing new interest over the last few months. Coinbase is one of the easiest platforms to get started with trading Bitcoin. Many users have started to join Coinbase. Coinbase has a complex job of securing vast amounts of digital currencies. They add dozens of thousands of users each day. Scaling such a business on such levels is tough. However, experts are saying that they have been making the right moves until now.

Bitcoin May Rise to $40 Thousand

Michael Novogratz, one of the most well-known Wall Street investors, said that he would sell Litecoin after it surges. Litecoin has seen some significant gains. It soared over 70%. It is the fourth largest cryptocurrency behind Bitcoin, Ethereum, and Bitcoin cash.

However, Michael Novogratz said that he does not see Litecoin reaching the same gains as Bitcoin. He said that once Litecoin surges, he would sell it. Bitcoin is the future of cryptocurrencies, at least for now, according to Michael Novogratz. In fact, Michael predicts that Bitcoin can easily rise to $0,000 in the next two to three months.

The chairman of the US Securities and Exchange Commission said that there are many dangers in Bitcoin investing. Because of Bitcoin’s high prices, regulators are starting to look into it. However, many exchange platforms are starting to add Bitcoin to their platforms.

Novogratz said that institutional investors are not yet investing in Bitcoin. However, once they start doing so, and they are indeed looking into it as a potential asset, Bitcoin will start going up. For example, if Goldman Sachs starts investing in Bitcoin, it will jump to all-time highs. This is not happening yet, and although Goldman Sachs said that they are clearing some Bitcoin trading for their clients, very little to nothing is actually going on.

Besides Litecoin, there are other altcoins, or alternative cryptocurrencies, that are rising. Ethereum and Bitcoin Cash, are all becoming increasingly popular.

Bitcoin Hits an All Time High

Bitcoin has gone from $5500 to $6500 in a week. This is an enormous spike for an already highly priced commodity. The value of Bitcoin seems to be growing continually. With no signs of stopping, there has been substantial speculation as to what the upper limit of Bitcoin’s value will be. Indeed, there are even predictions that Bitcoin’s price will reach $100,000 within 10 years. This speculation in and of itself is a major force in driving up the price of Bitcoin. The more people buy-in as a result of hopes for a meteoric rise, the more the value will increase. However this speculation based increase in value leads to dangerous situation where any loss of confidence in Bitcoin can lead to a massive crash.

Bitcoin, and crypto-currency in general, is highly vulnerable to government regulation. If global economic policy shifts against crypto-currency, bans on Bitcoin would lead to an utterly catastrophic decrease in value. Even ruling out outright banning crypto-currency, if economic policy on the governmental level turns against it many people will jump ship, driving the price down. So far, the government has not significantly reacted to crypto-currency. As crypto-currency begins to become more prevalent and cause macro level effects on world economies, it is likely that there will be at least some negative reactions that will reduce the value of Bitcoin.
However until governments decide to take action against Bitcoin, it is likely to continue to increase in value.