Bitcoin is constantly breaking records and it looks like it’s going on an upward slope. Its enthusiasts are torn in between celebrating Bitcoin’s arrival, or what seems like an unavoidable burst that has always happened with asset bubbles. This craze has brought a lot of skeptics that believe this could be another fad or bubble.
There is evidence for both points of view.
David Ader, a chief macro strategist has found similarities between Bitcoin’s gains and that of the Nasdaq Telecommunications Index before the tech bubble burst.
Looking at Bitcoin’s growth chart and comparing it with that of Nasdaq Telecommunications index, one can notice how the charts plummet in very similar style.
In the 2000’s Nasdaq was at its peak, and right before a drastic crash for which Ader seems to draw similarities with Bitcoin.
Calling it an overly frothy market Ader is very skeptical towards Bitcoin’s growth. “I think it’s going to come to a sorry ending,” he said. “I don’t know anybody who’s actually used a Bitcoin for any purpose legal or otherwise. This looks like an overly frothy market and frothy markets lose their froth.”
However, there are still a few contradicting analyses that show a completely different spectrum and how Bitcoin has no comparison with other bubbles in the past, with the cryptocurrency skyrocketing at a high upward rate, leaving no correlation to be made with either the tech bubble, homebuilders bubble or biotech bubble.
Believers and enthusiasts in the digital cryptocurrency , such as Octagon Strategy’s Dave Chapman, claim that this is actually just the tip of the iceberg. Bitcoin can grow to reach $10.000 very soon.