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<p><img src="https://cointelegraph.com/images/725_Ly9jb2ludGVsZWdyYXBoLmNvbS9zdG9yYWdlL3VwbG9hZHMvdmlldy9jZGMyMDk0N2JjZDI0MjUzMTMyOWRjODE4ZTMyMzVhMi5qcGc=.jpg" width="725" height="483"/></p>
<p>https://cointelegraph.com/news/bitcoin-price-stabilizes-at-2700-another-surge-imminent</p>
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<p> The recent rapid increase in the price of cryptocurrencies has resulted in many experts calling it a <a href="https://cointelegraph.com/news/altcoins-will-burst-dash-will-crash-vinny-lingham">bubble</a> and advising caution while investing. </p>
<p><a href="http://www.aberdeen-asset.com/">Aberdeen</a> Asset Management is the latest to do so, arguing that like all bubbles, the virtual currency bubble will eventually burst too.</p>
<h2>Bubble-like Characteristics</h2>
<p>The growth in the valuation of cryptocurrencies in 2017 has been unprecedented. </p>
<p><a href="https://cointelegraph.com/tags/bitcoin-price">Bitcoin price </a>has more than tripled in value, going from $900 in Jan 2017, to over $2,700 as of now.This pales in comparison to Ethereum’s gains. </p>
<p>Ether price has risen from ~$8 in January 2017, to $350 currently, a gain of over 4000 percent. </p>
<p>Other cryptocurrencies too have risen <a href="https://cointelegraph.com/news/investors-who-missed-bitcoin-rally-go-for-ether-monero-litecoin">multifold</a> in value, leading to natural apprehensions of a cryptocurrency bubble.</p>
<h2>Gold Rush Mindset</h2>
<p>Aberdeen believes that we are currently in the midst of a cryptocurrency bubble and its bursting is inevitable. </p>
<p>Speaking to <a href="https://www.bloomberg.com/news/articles/2017-06-22/aberdeen-says-crypto-bubble-to-burst-before-coins-change-finance">Bloomberg</a>, Peter Denious, head of global venture capital at Aberdeen Asset Management Plc, said:“Prices right now aren’t being driven by network usage, they’re being driven by speculation that tokens are going to appreciate. </p>
<p>It’s a gold-rush mentality.”The proliferation of ICOs and the rapid increase in the price of tokens upon listing is one of the indicators of a bubble. </p>
<p>Companies in the Blockchain space seem to have no difficulties in <a href="https://cointelegraph.com/news/broken-record-bancor-raises-144-mln-in-less-than-three-hours">raising money quickly</a> through ICOs, even if they do not have a proven or unique idea behind their token.</p>
<h2>Other Assets at Record Levels</h2>
<p>While the returns on cryptocurrencies in 2017 is unparalleled, other asset classes have risen too. </p>
<p>Equity indices like Nasdaq and S&P 500 are at <a href="http://www.cnbc.com/2017/05/25/us-markets.html">record</a> levels, in spite of the uncertainty in global markets. </p>
<p><a href="https://www.bloomberg.com/news/articles/2017-06-11/u-k-house-prices-climb-to-record-even-as-sales-slow-in-london">Housing prices</a> have largely recovered from the previous burst.One reason for the increase in prices is the ample liquidity in global markets, caused by quantitative easing by various central banks.</p>
<p>While the cryptocurrency bubble may burst, it might not be the only one to do so. Past global crises have shown that the effect of a real estate or widespread equity bust can have long-lasting effects on the economy </p>
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