A few days earlier, CNBC uploaded a segment claiming that Bitcoin can be the greatest bubble in history. It was showing the host of CNBC’ Mad Money, Jim Cramer referring to Bitcoin as Monopoly money. Also, he highlighted that investing in Bitcoin is gambling and gamblers would have a better time in Las Vegas, rather than investing in cryptocurrencies.
CNBC claims Bitcoin will be the greatest bubble in History.
The site was running some videos of financial experts denigrating the major digital currency. Then, CNBC compared Bitcoin to some of the history’s greatest bubbles. For instance, the tulip bubble (the 1600s), the South Sea bubble, the Mississippi bubble, Japanese stocks, the tech bubble, the Great Depression and the financial crisis.
The chart compared each of these bubble’s starting prices. After, it stated that Bitcoin’s situation is approaching the tulip bubble, the greatest bubble in history.
The segment pointed out some of the greatest signs that Bitcoin appears and they appear also on every bubble. These are the rapid pace movements, many non-traditional investors joining in and a lot of speculation without paying much attention to the risks.
Further, the narrator referred to the upcoming Bitcoin futures (that NASDAQ, CBOE and the CME Group are planning to launch) as a similar move the Dutch made before the crash of the tulip bubble.
The segment noted that markets that are going parabolic often have a tragic end.
Since its begging, Bitcoin has risen about 50-fold, the segment added. If it sustains this growth rate, it will overcome the U.S. economy in a couple of years. While other assets returned some profit, Bitcoin has no inherent value. It doesn’t generate income besides the expectation of a further increase in price, the narrator added.
The segment summarized saying Bitcoin is valuable because people think it is. The digital currency has gone parabolic, and that often doesn’t end well. This kind of bubbles doesn’t last.