Crypto assets are a bubble.
Crypto assets have the characterstic price behaviour that resembles many other bubbles and market manias throughout history. Bitcoin has been characterised as a speculative bubble by eight winners of the Nobel Prize in economics.
- Paul Krugman
- Robert J. Shiller
- Joseph Stiglitz
- Richard Thaler
- James Heckman
- Thomas Sargent
- Angus Deaton
- Oliver Hart
And by central bank officials:
- Alan Greenspan
- Agustín Carstens
- Vítor Constâncio
- Nout Wellink
- Mark Carney
And several notable investors have also described it as a bubble:
- Warren Buffet
- George Soros
- Chancellor, Edward. 1999. ‘Devil Take the Hindmost: A History of Financial Speculation’.
- Blanchard, Olivier J, and Mark W Watson. 1982. ‘Bubbles, Rational Expectations and Financial Markets’. NBER Working Paper, no. w0945.
- Bernstein, William J. 2021. The Delusions of Crowds: Why People Go Mad in Groups. Grove Press.
- Demmler, Michael, and Amilcar Orlian Fernández Domínguez. 2021. ‘Bitcoin and the South Sea Company: A Comparative Analysis’. Revista Finanzas y Política Económica 13 (1): 197–224.
- Baur, Dirk G., and Thomas Dimpfl. 2021. ‘The Volatility of Bitcoin and Its Role as a Medium of Exchange and a Store of Value’. Empirical Economics 61 (5): 2663–83. https://doi.org/10.1007/s00181-020-01990-5.
- Caferra, Rocco, Gabriele Tedeschi, and Andrea Morone. 2021. ‘Bitcoin: Bubble That Bursts or Gold That Glitters?’ Economics Letters 205: 109942. https://doi.org/10.1016/j.econlet.2021.109942.
- Mackay, Charles. 2012. Extraordinary Popular Delusions and the Madness of Crowds. Simon and Schuster.
- Nabilou, Hossein, and André Prüm. 2019. ‘Ignorance, Debt, and Cryptocurrencies: The Old and the New in the Law and Economics of Concurrent Currencies’. Journal of Financial Regulation 5 (1): 29–63. https://doi.org/10.1093/jfr/fjz002.
- Smales, L. A. 2022. ‘Investor Attention in Cryptocurrency Markets’. International Review of Financial Analysis 79: 101972. https://doi.org/10.1016/j.irfa.2021.101972.
- Kolchinski, Alex. 2022. ‘Crypto Is an Unproductive Bubble’. Alex Kolchinski (blog). 18 March 2022. https://alexkolchinski.com/2022/03/18/crypto-is-an-unproductive-bubble/.
- Krugman, Paul. 2021. ‘The Brutal Truth About Bitcoin’. The New York Times 21.