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Noah Smith

Lessons on Bubbles From Bitcoin

Until there is a way to bet against an asset, its price will be set by the most upbeat buyer.
This can be cured.

This can be cured.

Photographer: Filippo Monteforte/AFP/Getty Images

The recent Bitcoin bubble wasn’t the first, and it might not be the last. Once in 2011 and twice in 2013, the price soared and then crashed:

And again: