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Are cryptocurrencies a financial bubble?

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Cryptocurrencies have experienced a rapid rise in popularity in recent years. Their decentralized nature, anonymity and potential for high returns are attracting more and more investments. However, along with this, there is growing concern among some experts about the overvaluation of digital assets and the sustainability of the cryptocurrency market. What is a market bubble? A market bubble is a situation in the market when the price of an asset significantly exceeds its real value, which sooner or later leads to its sharp fall. Economic bubbles do not appear suddenly. They can take months or years to form, and they can cover any area of the economy, from real estate to stocks. Although some experts consider economic bubbles to be a myth, most economists do not share this view and identify a number of reasons for their occurrence: Unreasonable investor behavior and desire for quick profits. Low-interest loans that encourage borrowing and increase purchasing power. The i