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Is there a cryptocurrency bubble building in 2017 and by when will it burst?

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  1. Study the background information carefully.
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Cryptocurrency are a digital asset class created (in most cases) by a decentralized blockchain. Invented by the pseudonomous Satoshi Nakamoto, the first Blockchain, Bitcoin, reached an early peak late 2013, when it rose from a market capitization of 2bn USD to 15bn USD in less than 3 months. Followed by a rapid crash to 10bn (2/3) and a slow decline the following 2 years.

Bitcoins First Bubble - Copyright: coinmarketcap.com

 

 

 

 

 

 

 

 

Since 2016 a new boom is emerging steadily, while the "Bitcoin dominance" went down with accelerating spead in favor of a more diverse currency portfolio. 

 

bitcoin dominance - Copyright: coinmarketcap.com

While one could argue this diversification leads to more stability, the application of cryptocurrency is still an open question. Are they more than a speculative asset? Or will the current boom eventually burst because there is simply no buyer left?