engleski

Cryptocurrencies, bitcoin and market bubbles

Bitcoin is emerging as the cryptocurrency for the first time in 2008., and introduces a completely new financial concept on the market. Bitcoin is digital, decentralized money that is not controlled by any official institution. Due to significant changes in value that are solely the result of changes in supply and demand, bitcoin resembles a textbook case of a market bubble. Media attention has contributed to the mass of bitcoin trading, and it is possible to perceive similarities with tulip mania, a phenomenon marking Dutch economy in 16th century. Authors analyze technical trading indicators in order to determine whether they are really a market bubble or it can be considered as a good investment opportunity. Authors find that bitcoin is an example of market bubble whose value will drop significantly, regardless of current fluctuation.

cryptocurrencies, bitcoin, market bubble

nije evidentirano