Jalil Javed and Henry Kincaid
According to investment strategists, the more than 700% increase in the value of the cryptocurrency Bitcoin, is likely a sign of a bubble in the financial world. Bitcoin’s value has increased from $ 973 at the start of the year to $ 7,400, a sevenfold increase in its value in the span of just ten months.
But financial advisors are skeptical, they warn that Bitcoin is another bubble just like the tech boom of the late 90’s, or the 2008 housing market crash.
A month before the 1987 crash, my cab driver said he started day trading,” Scott Kelly, CEO of Black Dog Venture Partners told Forbes. “A month before the real estate crash in 2007 in Arizona, my cab driver said he was getting into flipping real estate. Last week, my Uber driver said he just started trading Bitcoin.”
Prominent figures such as Warren Buffet, Jamie Dimon, and Robert Shiller have been critical of the cryptocurrency, particularly of its practicality and future.
“But it is anybody’s guess what inning. It looks to me like we’re well ahead of the 7th-inning stretch,” said Jason R. Escamilla, CEO of ImpactAdvisor, as quoted by Fobes. “The price level and energy usage are unsustainable. There is far better technology emerging to meet the same needs.”
Featured Image Credits: Getty