As the cryptocurrency Bitcoin hit a high of over $11,000 at one point this past week, more and more market watchers are predicting a crash of some severity. Unlike most of those “gut calls”, one study
The study, entitled “Bubbles for Fama” was authored by Robin Greenwood, finance and banking professor at Harvard Business School, and
Bitcoin’s run-up over the last two years is nearly 2,500%.
(But who is “Fama”, you ask? He’s a well-known academic economist who is also a leading proponent of the “Efficient Market Hypothesis”, which states that the markets have already efficiently and effectively incorporated all known information into its pricing. But if that’s true, there can be no bubbles! So, the authors are offering up their study of genuine bubbles to Professor Fama for his consideration…)