The Bitcoin Bubble Has Officially Reached the Stock Market
If you think the stock market or your portfolio has had a phenomenal return in recent years, it probably pales in comparison to the returns of cryptocurrencies like bitcoin and Ethereum. Over the trailing-two-year period, bitcoin has risen in value by more than 1,800%, while Ethereum is up almost 4,100% year to date! That's nearly 4,100% in eight months, which is what the S&P 500 took more than four decades to return as an index.
There are a handful of reasons why digital currencies are all the rage. Momentum is certainly one of them. Investors are likely seeing triple- and quadruple-digit gains on bitcoin and Ethereum, and they don't want to miss the boat. Given that few financial institutions are involved in cryptocurrencies, and the fact that they lack government backing, they can be moved on whims and emotions. Right now that emotion is decidedly optimistic, which has helped push bitcoin and Ethereum into the stratosphere.
Image source: Getty Images.
Source: Fool.com
