SURVEY: The majority of CoinDesk readers think there’s a bubble in cryptocurrencies

The explosive growth of the cryptocurrency market even has readers of blockchain news site CoinDesk thinking there is a bubble in the $164 billion market. 

Since the beginning of the year, the market cap for digital coins has increased $146 billion, according to data from Coinmarketcap.com, an 811% increase. That growth has been fueled in part by the appreciation of bitcoin, the original digital currency, and initial coin offerings, the red-hot cryptocurrency-based fundraising method. 

A survey conducted by CoinDesk found the majority (58%) of the publication’s readers believe digital assets are in a bubble. That’s striking considering at least 68% of the 1,300 readers surveyed are cryptocurrency investors themselves. 

The survey was part of the news company’s Q2 “State of the Blockchain Report,” which highlighted a number of trends in the crypto space.

CoinDesk’s readers are certainly not the only folks who think there’s a bubble. 

The unbridled march of bitcoin, which is up 381% year-to-date, and initial coin offerings, which this year have raised over $2.1 billion, have folks across Wall Street sounding the alarm. 

Jeffrey Kleintop, the chief global investment strategist at Charles Schwab, the $3.1 trillion money manager, said the bitcoin bubble is unlike anything we have ever seen

Meanwhile, Schwark Satyavolu, a general partner at Trinity Ventures, a venture capital firm, thinks the market for initial coin offerings could be a bubble akin to the mortgage bubble that ushered in the 2008 financial crisis.

“If investments continue at the current rate, this could become the next mortgage crisis with people – including institutional investors – losing hundreds of millions of dollars when (not if) many of these companies go out of business,” Satyavolu said in a statement emailed to Business Insider.  

SEE ALSO: Bitcoin’s ‘bubble’ is unlike anything we’ve ever seen before

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