Is bitcoin a bubble or not


There is a second and even more serious reason why Bitcoin is not suitable as a currency. Connect with ABC News. The economists also warn that few current bitcoin investors appear to have done such calculations is bitcoin a bubble or not risk analysis before speculating. Certainly, the cap on the total number 21 million of bitcoins that can exist, makes the currency inherently deflationary — the value of the currency relative to goods and services will keep increasing even without speculation and so there is a disincentive to spend it.

First posted December 14, This happened recently when Kodak's share price surged after the struggling imaging company announced it was launching its own cryptocurrency. After 15 parliamentarians were brought down by a tricky section of the constitution, a bipartisan parliamentary committee wants a referendum to change it. Here's what would happen if the Bitcoin 'bubble' burst Analysts are sceptical of Bitcoin's meteoric rise.