Bitcoin has seen massive increases in its price throughout 2017, hitting record highs continuously along the way. These spikes have led to a lot of people investing in bitcoin and other digital currencies. Now cryptocurrency is something that has jumped over to the mainstream, with a lot of people hearing about bitcoin and the excellent results it has been generating.
Correcting a Bullish Market
There are still many skeptics about the long-term viability of bitcoin, and there is the belief that a massive bubble currently exists in this industry. Well-known investors such as Warren Buffet have been calling bitcoin a bubble for some time now, with many comparing the substantial growth rates with tulip-mania which hit the Netherlands back in the 17th century.
To date at least, bitcoin has made these doubters look silly, as prices continue to rise and rise over time, bouncing back from big dips along the way.
The critical point is that just because something has a price that keeps rising, it doesn’t mean that it is necessarily more valuable over the long run. There are certain levels of frenzy at play currently with bitcoin, with many non-investors trying to get in on the gains that have been made thus far, which is often a warning sign that things are starting to overheat…