web3/concepts/bubble.md

Bubble

An economic bubble is a phenomenon in markets created by herd mentality, whereby people hear stories of others who bought in early and made big profits, causing those who did not buy to feel a fear of missing out. This causes irrational pricing of the asset which proceeds until the mania subsides.

Examples

• South Sea Bubble
• Beanie Baby Bubble
• London Rail Bubble
• Tulip Mania
• Dot-com Bubble
• Japanese Real Estate Bubble

References

• [@mackay_extraordinary_2012]
• [@bernstein_delusions_2021]