As technology stocks and securitized mortgages have demonstrated all too recently, just because a bubble pops doesn’t mean it’s the end of the market. Hell, it doesn’t even necessarily preclude that another bubble won’t emerge years later.
Wall Street analysts trying to figure out if JP Morgan CEO Jamie Dimon and Bridgewater Associates’ Ray Dalio are right about bitcoin – i.e. that digital currencies are frauds doomed to fail – should consider this phenomenon as they try to game out different scenarios for the future of the digital-currency market, said Ethereum co-founder Joe Lubin.
When asked by Quartz about his thoughts on whether digital currencies are in a bubble, Lubin responded with an unequivocal yes.
“Of course it’s a bubble. Hopefully it’s one in a series of increasingly larger bubbles,” Lubin said. “These bubbles bring attention, they bring value into the ecosystem. That value is recognized by software developers and business developers, and they create fundamental value and projects that grow the new architecture.”