Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Study: Cryptocurrency Market 'Like Dot-Com Bubble With A Crash'

Published 05/28/2018, 10:15 AM
Updated 05/28/2018, 10:15 AM
© Reuters.

© Reuters.

Investing.com - The cryptocurrency market resembles the dot-com bubble of the 1990s because of its excessive speculation and only a small number of digital coins will survive, according to a new study
The study by the UK's Warwick Business School has a number of other critical findings.
It says the high price volatility of cryptocurrencies means they are not a "reliable savings instrument" even on a short term basis.
Prices are volatile, the study says, because demand is driven by past prices, or simple emotion, rather than by economic fundamentals.
The study, which focuses on the 14 largest digital coins, concludes  investing in the currencies is "very risky" and "it is very difficult to see who will be the Amazon (NASDAQ:AMZN) of the cryptocurrency craze."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.