Why Investors Need Not Fear The Bitcoin Bubble

The price of crypto currency Bitcoin fell below the $15,000 level today. In recent weeks Bitcoin has soared to astronomical levels leading to a bubble. As prices continued to soar with wild swings in between some investors have worried about the bursting of the bitcoin bubble. Some may even wonder about the impact of bitcoin prices crashing on other assets such as equities, bonds, etc. This fear is unfounded. Bitcoin is nowhere in terms of market capitalization compared to the US stock market as shown in the chart below:

Click to enlarge

Via Twitter @Lelde Smits

The key takeaway is that investors should avoid all the noise daily in the media around bitcoin and other crypto currencies.

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