As money and trading have become more sophisticated over time, we’ve run into some economic bumps in the road, called bubbles. Bubbles are also known as Economic Bubbles or Asset Bubbles, and they are situations where an asset is at a price range that strongly exceeds the asset’s intrinsic value.
A bubble is an economic cycle characterized by rapid escalation of asset prices, followed by a large drop in price (when the bubble pops or bursts). Bubbles are often conclusively identified only in retrospect, once a sudden drop in prices has occurred.
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