What Is Monero Coin Bubble?

The financial bubble represents a condition in which a good’s or commodities’ speculative values far surpass the intrinsic inherent value contained in that commodity. Sometimes it happens that people start believing in unbelievable myths and start speculating unrealistic prices of a commodity or a stock to happen in future. This causes a sharp demand rise of that particular commodity the supply of which is not realistically possible. As such the prices of the commodity surge up to unrealistic levels and ultimately causes the price bubble to burst to the original value of what that commodity was worth of originally. These bubble conditions have arisen in modern history many times. In the medieval times, a similar phenomenon happened in the prices of Tulips in the Dutch Republic which ultimately resulted in the downfalling of the prices terribly and investors losing a huge amount of their saved corpus.

A similar phenomenon happened in the 21st century which was named as dot com bubble. The prices of IT company’s shares and stocks kept on moving forward and forward due to such huge speculative mania within the minds of the people in not just United States of America but in other parts of the Anglo world too. Ultimately the bubble busted causing the investors to lose huge amounts of money. Such kind of bubbles is also speculated by the monetary experts globally from time to time regarding the price rise in the Bitcoin and other cryptocurrencies. The last one and a half months were a period of bash and mania in the domain of cryptocurrencies as the premium cryptocurrency Bitcoin prices rose to the levels of 16000 US dollars which were 4000 US dollars a year before.

However there are people who don't consider this surging of the prices in Bitcoin and Monero as a bubble but on the other hand, there is no dearth of people who still consider this cryptocurrency phenomenon as a bubble. This understanding that the phenomenon of cryptocurrency especially the Monero could be a bubble is often termed in popular media as Monero bubble.

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