If the markets are at a top, bitcoin has scaled the highest peak.
Past episodes of market euphoria have often been marked by extreme optimism over new technologies. In the 1920s it was automobiles and radio. In the late 1990s it was the internet. Today the innovations fueling investor dreams include video streaming and electric cars. But none has inspired as much zeal as blockchain, the distributed ledger technology underpinning bitcoin and other digital currencies.
As in those previous market bubbles, the underlying technological revolution is real. Blockchain has the potential to change how commerce is conducted by cutting out financial intermediaries. But, just like during the dot com bubble, that doesn’t make all or even most of today’s blockchain players smart investments.