Because dear, because, not despite

Bitcoin passes $200 mark for the first time
Bitcoin, the controversial electronic currency, has passed the $200-mark for the first time, setting new records despite talk of a bubble.

No one, no one at all, is stating definitively that Bitcoin is a bubble.

Rather, an awful lot of people are looking at the price and going, hmm, that looks a bit bubbly. Yes, new paradigm, fundamental change in the world, entirely new, only 21 million ever and only non-governmental currency untraceable and…….but, the price behaviour. It just looks very bubbly. Like tulips, like Polly Peck at one time, like Poseidon (think that was it, Oz nickel firm) and so on.

It is possible that there really is a new paradigm: but that price still looks very bubbly indeed.

7 thoughts on “Because dear, because, not despite”

  1. Old Stock Exchange advice.
    “Sell in May & go away.”
    I wouldn’t be waiting until May.
    Price support requires a balance of sellers & buyers. Would you @ 200USD?

  2. Well, to be a pendant _talk_ of a bubble (whether accurate or not) would presumably depress the price, even if the increasing price may be indicative of an actual bubble.

  3. If I had bought at $5-10 a while ago and now it is $200, I would be cashing in and – if I’m still scared about preservation of my wealth – buy metals.
    It would be interesting to see where most of the money is being pumped from, I suspect not from Western countries where people do have the option of gold and silver but perhaps from places where they do not?
    I can’t really get a true gut sense of the market size of BTC, how many frightened people does it take to pump the price up so much? If the answer is not many, then I suspect that most of the pressure is coming from a very localised region.
    I could be completely wrong, of course.

  4. And presumably those planning to buy in now and cash out next week will be the ones screaming the loudest about it being a bubble.

  5. Ash, go to Marginal Revolution – Tyler Cowen has been talking about Bitcoin there for years, and if you search through the archive most of your questions will be answered.

  6. Looked like a paradigm shift when I reviewed it two years ago. Still does. Bubble or not, I’m happy to sit it out for another 10/20 years. Better odds than The Grand National.

  7. Kevin Monk>

    Better odds than the Grand National? I very much doubt it. There’s no chance of Bitcoins ever becoming an actual currency, because only the crooked, stupid, or blindly greedy, would ever buy the things. Despite the inflated claims, the Bitcoin protocol doesn’t actually do what it says on the tin.

    Do you know what a Bitcoin ‘fork’ is? I’d hazard a guess that fewer than 1% of current Bitcoin owners realise what it actually means, what the implications are.

    I’m still not quite sure whether Bitcoin was always intended as a scam, or whether, for the purpose it was designed – trading kiddy porn – the limitations are unimportant, but either way it’s laughable as an actual intended currency.

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