This year, full of highs and lows in cryptocurrency market, according to several analysts, bitcoin plunged by 30% around six times and each time it managed to recover quite speedily. However, there still have been room for speculation and debates to stir, concerning the theory whether bitcoin is a bubble or not.
In accordance with the data, presented at the CoinMarketCap, currently, the most prominent cryptocurrency in the world is worth of about $15,160 (at the moment of writing). It is the rate to which bitcoin recovered after the correction to less than $12,000 on December 22, a week after futures, based on this cryptocoin were launched at the world’s most significant exchange CME and after bitcoin reached its record of $20,000.
Will bitcoin keep growing or it will crash down in the foreseeable future, becoming the world’s most speculative bubble – nobody can say that for sure. Nevertheless, different honorable experts have their own opinions on this enigma of the information age. For example, Chief Strategist at the bank and brokerage firm Charles Schwab, Jeffrey Kleintop believes that bitcoin’s case is unique.
So is Bitcoin a Bubble or Not?
In the interview with Business Insider on December 26, the investment strategist was asked whether he considers bitcoin to be a financial bubble. Answering such a captious inquiry, Schwab proposed to pay attention to the originality of bitcoin in the worldwide economy. So, according to his words, it is complicated to forecast its sovereignty.
Traditionally, analysts tend to compare bitcoin to previous bubbles which burst during a different time in history. For instance, such was the Tulip Mania, the dot-com boom and even the Wall Street Crash of 1929. Instead, Kleintop focuses on the extraordinary nature of this so-called digital gold.
“[...]I think the Bitcoin bubble if you want to call it that, is something different. If prices for Bitcoin were to plunge suddenly, because it's so independent from the financial system, it's kind of its own thing. It hasn't yet become embedded in the economy and the financial structure,” Kleintop summed up.
Meanwhile, this investment strategist is not alone in building on the uniqueness of bitcoin when it comes to the discussion of its “bubble”-like nature. In particular, earlier Fundstrat Global Advisors’ head of research and analyst Tom Lee in the interview with Bloomberg claimed that even if bitcoin was a bubble, it was the smallest bubble that he had ever seen.