Why It's Overkill to Compare the Bitcoin Slowdown With History's Biggest Bubble Bursts

Especially after the latest Bitcoin nosedive prompted investors to weigh the asset class with some of history's most spectacular asset bubbles.

Some leading financial publications comparing the Bitcoin plunge with some of history's biggest bursts did so back in 2014 too.

This prompted some analysts to draw a parallel to the South Seas Bubble.

The South Seas Bubble refers to the spectacular crash of the stocks of U.K.-based South Sea Company.

After the recent plunge in Bitcoin prices, similar reports have begun surfacing wherein analysts are comparing the currently downward spiral of the crypto market with bubble bursts such as Tulip Mania, South Sea Bubble, and Wall Street Crash of 1929, among others.

Sure, the crypto market is down today compared to late-2017 with Bitcoin price hovering in between $4,000 to $4,500 as of press time.

Even with the current slow down taken into account, most of these analyses seem to have conveniently forgotten to draw a comparison between the current bubble and the one from 2014.

Is this a bubble within a bubble? A double-bubble, maybe?

The real question is: have there been assets with multiple bubbles?

The bottom line here would be that unlike the other bubbles these analysts have referred to, the so-called Bitcoin bubble doesn't seem to burst into oblivion.