Of bubbles and metaphors

with the prices of crypto-currencies quickly rising out of everyone’s reach, one of the more common questions being asked is: “are we in a bubble?”

what this metaphor is really asking for is a risk assessment regarding price stability and the likelihood that our potential investment may see a price collapse that leaves us somewhat poorer and less hopeful about the future

to discuss the subject in a language less informal than that of bursting bubbles, let’s define the condition in question as an over-exertion of the market. markets have buyers and sellers, the…