Economic bubbles

An economic bubble occurs when the prices of assets, like stocks, real estate, or cryptocurrencies, rise rapidly beyond their intrinsic value, driven by excessive demand and speculation. People buy in anticipation that prices will keep climbing, fueling further increases. Eventually, confidence wanes, and many start selling, causing prices to plummet quickly. This sudden drop can lead to financial losses and economic instability. Bubbles are often fueled by optimism, new technology, or hype, but they are unsustainable because they detach asset prices from their true economic worth.