In economic terms, a speculative bubble refers to a situation in which the price of an asset becomes heavily overvalued. An asset could be anything from company shares and property to cryptocurrencies.
But eventually, reality catches up. Investors begin to realise the asset isn’t actually worth as much as they thought, confidence fades, and many rush to sell. When everyone sells at once, prices collapse, leading to what’s commonly known as a crash.
But what exactly is a speculative bubble? Have there been bubbles like this before? Does the consensus say that AI is a bubble then?
In under 3 minutes, we answer your questions!
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A Bababam Originals podcast written and realised by Joseph Chance.
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