Bitcoin may or may not be in bubble at the moment, but there is one bubble call I’m confident in making ― Litecoin. If you haven’t been paying attention, Bitcoin isn’t the only digital currency surging as of late. Litecoin recently reached a $1 billion market cap (although it is back down to $880M at the moment). Not only has it been making huge gains relative to the dollar, but also relative to Bitcoin. Take a look at this chart:
So why do I say it’s a bubble? Let’s ask ourselves what is driving Bitcoin’s price at the moment. Almost all of the demand is based on expected future adoption by consumers and merchants. If that adoption never materializes, Bitcoin will come crashing down pretty hard.
Escape Velocity 