I speculate that there are some anti-bitcoin groups behind every
bitcoin is a bubble news released. They are trying to disseminate fear and confusion among the crowd, and at the same time, they are charging up to short bitcoin to profit from the crash, while again getting ready to buy the bottom.
Wall Street plays the same game as the whales of bitcoin, but by a magnitude greater.
Bitcoin is all the rage again, and its major sustained price increase in recent weeks has prompted considerable interest and novice investment in the world's first cryptocurrency. Some people see this as a sign that bitcoin's end is near, but others argue that the infant e-money is actually massively undervalued in the long run.
As is common with any price peak and flurry of media chattering, bitcoin's most recent momentum has been met with predictions of boom and doom. A Wall Street Journal survey of economists found that an astounding 96 percent believe that bitcoin is experiencing a speculative bubble. The question for them is not whether the bubble will burst, but how badly, and how soon (if ever) it will recover.
It is true that the market shows signs of frothiness. Seasoned bitcoin users have found themselves inundated with questions from friends and relatives about how to cash in on this hot get-rich-quick scheme. When I talked to radio host John Batchelor about the bitcoin price increase last week, he told me he was reminded of the famous 1929 tale wherein famed investor Joe Kennedy quickly exited the stock market after his shoe shine boy deigned to give him investment advice. Contemporary anecdotes about people taking out mortgages to buy bitcoin fall into a similar vein.