From the Dutch “tulip mania” in the 1630s to pandemic-era meme stocks GameStop and AMC, history is littered with peculiar movements in asset prices. But what makes them a financial bubble?
The thing about financial bubbles is that it’s really hard to spot them. It might even be impossible. David Rowe
Bitcoin is trading at a record high of about $US108,000. That’s up from $US55,000 a year ago, and $US9200 five years ago.
Does the price of bitcoin reflect fundamentals? It could do. We’ve recently learnt that even in advanced economies, policy-induced inflation can wipe 20 per cent or more off the value of your savings.
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Original URL: https://www.afr.com/policy/economy/why-it-s-so-hard-to-spot-a-bubble-20250707-p5md0k
