Bubbles always look completely absurd when they're looked at retrospectively. "How could we have been so stupid?" the participants ask themselves after the pop. However, spotting a bubble while participating in one is incredibly difficult, as a bubble can just as easily resemble the wave of the future.
So where does that leave bitcoin? Plenty of people are insistent that this isn't a bubble and that bitcoin is going to grow even more. Plenty of others are pretty sure it's utterly worthless. The truth probably lies somewhere in between.
However, before one can judge bitcoin, it's probably best to understand it. Masters-of-finance.org have made this handy infographic to explain what bitcoin really is, what its advantages might be, and why Dutch tulips are relevant to the debate over bitcoin's future.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer