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

Published 05/28/2018, 10:15 AM
AMZN
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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."

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