Publikation: Geuder, J., Kinateder, H., Wagner, N. (2019): Cryptocurrencies as financial Bubbles: The Case of Bitcoin, Finance Research Letters 31: 179-184.
Cryptocurrencies do neither have intrinsic value, nor do they offer a final promised payment or any dividends. At the same time cryptocurrencies today do not broadly serve as legal tender or as a common and official means of exchange. As such, cryptocurrencies offer an ideal setting for testing speculative behavior. Investors may assume that buying a digital currency that is limited in supply allows them to sell it later at a higher price, which in turn may lead to speculative bubbles.