One of the most dramatic market developments in 2017 was the breathtaking roller-coaster ride of Bitcoin, a cryptocurrency up nearly 20-fold since the start of the year and down by 40 percent in a single day, an opinion piece in the People’s Daily’s argued on Wednesday.

Sharp rises, sharp falls, and overvaluation all point to the existence of a Bitcoin bubble. There are certain “advantages” of Bitcoin, such as scarcity, fidelity, liquidity, transparency, and decentralization. However, they are synonymous with speculation.

The Bitcoin bubble results from a lack of regulation and reckless speculation.

The digital currency was largely a mystery when it was introduced. Investors are easily lured by its decentralized nature and regard it as a safe transaction tool that can avoid regulations from any financial institutions or any governments.

On the other hand, no mechanism limits the rise of Bitcoin prices, thus leading to opportunities for those who want to make a quick fortune by pushing the price up and cashing out in minutes. A few massive investors can rock it with a shrug, as Bloomberg said when reporting Bitcoin whales, holders of large amounts of Bitcoin.

The Bitcoin as a virtual currency is very volatile and has no intrinsic value. Without the identity as a currency backed by central banks, Bitcoin becomes a special “equivalent” in a grey area that lacks regulations from financial supervision authorities.

Bitcoin has felt like the maddest speculative bubble, a tulip fever for the hi-tech era. A big shadow is still haunting its future.