During 2017 bitcoin rose from $900 to $20,000. As I write this, it was priced around $16,000. According to Warren Buffett, in Forbes in November 2017, “You can’t value bitcoin because it’s not a value-producing asset… it’s a real bubble… It doesn’t make sense...I don't believe in this whole thing at all. I think it’s going to implode." Jared Dillian of Mauldin Economics expects bitcoin to eventually be priced around $150.

It is newsworthy how many investors and analysts have recently asserted that bitcoin – and by extension, all cryptocurrencies – are in a bubble. This in a day where the Dow is up to almost 26,000 and all indexes are at all-time highs. A few analysts are saying the stock market is in a bubble.

Yet Robert J. Shiller, Vanguard Founder Jack Bogle, James Rickards, Peter Schiff, Ray Dalio, CEO of JP Morgan Jamie Dimon, Nobel Laureate Joseph Stieglitz, and others have all stated in the past year that bitcoin is a “fraud,” “it ought to be outlawed,” or it is in a bubble.

This was all before bitcoin hit its recent all time high of almost $20,000. Since then, it corrected to almost $11,000, or down about 40%, bitcoin’s largest correction since 2013. But then it rebounded into the $15,000 range, then corrected again.

If there is a bitcoin bubble is it bursting or about to burst? As I said in my September 2017 article, Are Cryptocurrencies The Best Investment Opportunity Of The Next Decade? Part Two, “None of the numerous articles that declare cryptocurrencies are a bubble (see here, or here, or here) seem to have any understanding of why or what constitutes a bubble...Amazon (2010) and Apple (around 2012) both looked high at prices of $100 and $80 and were accused of being in bubbles – but at prices of 970+ [currently, 1150+] and 150+ [170+] today one would question the past evaluation.”

Some investors – Schiff in particular – make some salient points about bitcoin and bubbles. Therefore, it is worth examining the nature of bubbles, and the arguments that cryptocurrencies are in a bubble, to determine whether the space is still worthy of investment.