Fry, John2020-01-052020-01-132020-01-052020-01-132018-10Fry J (2018) Booms, busts and heavy-tails: the story of Bitcoin and cryptocurrency markets? Economics Letters. 171: 225-229.RMSID:212519622http://hdl.handle.net/10454/17568YesWe develop bespoke rational bubble models for Bitcoin and cryptocurrencies that incorporate both heavy tails and the probability of a complete collapse in asset prices. Empirically, we present robustified evidence of bubbles in Bitcoin and Ethereum. Theoretically, we show that liquidity risks may generate heavy-tails in Bitcoin and cryptocurrency markets. Even in the absence of bubbles dramatic booms and busts can occur. We thus sound a timely note of caution.enCrown Copyright © 2018 Published by Elsevier B.V. All rights reserved. . Reproduced in accordance with the publisher's self-archiving policy. This manuscript version is made available under the CC-BY-NC-ND 4.0 license.BitcoinBubblesCryptocurrenciesEconophysicsLiquidity riskArticlehttps://doi.org/10.1016/j.econlet.2018.08.0082020-01-05