While the value of Bitcoin plunged from $900 to $540 over the past day, gains for the year have still been massive. Back in January, Bitcoins were trading at only $20 each. Now, many are questioning whether the rapid rise means Bitcoins are sitting on a bubble.
Interestingly enough, Bitcoin might be just one of many — InvestorPlace editor Jeff Reeves has identified four other potential bubbles, for instance. Not to mention, there are various individual stocks that are fetching outsized valuations including Tesla (TSLA), Twitter (TWTR) and Voxeljet (VJET).
But bubbles are actually fairly common throughout history, often the result of a megatrend like railroads, autos and PCs. Unfortunately, the endgame is always the same: huge losses for investors.
Here’s a look at four of the most interesting bubbles across history.