5 biggest economic bubbles in history By Cointelegraph
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An economic bubble is a time of fast economic expansion that is driven by speculative enthusiasm and excessively high asset prices. A bubble is characterized by an increase in demand for an asset, such as commodities, stocks or real estate, which drives up its price. A number of factors, including easy access to credit, low interest rates and investor optimism, frequently combine to create financial bubbles.
The asset’s price rises as more individuals invest in it, luring even more capital. Its price eventually falls below a level that can be sustained, which causes a sell-off and a sharp collapse in value. This causes widespread losses for investors and can have a large negative impact on the overall economy.
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An economic bubble is a time of fast economic expansion that is driven by speculative enthusiasm and excessively high asset prices. A bubble is characterized by an increase in demand for an asset, such as commodities, stocks or real estate, which drives up its price. A number of factors, including easy access to credit, low interest rates and investor optimism, frequently combine to create financial bubbles.
The asset’s price rises as more individuals invest in it, luring even more capital. Its price eventually falls below a level that can be sustained, which causes a sell-off and a sharp collapse in value. This causes widespread losses for investors and can have a large negative impact on the overall economy.
Continue Reading on Coin Telegraph
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