web3/concepts/bubble.md

16 lines
491 B
Markdown

# 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]