This month has seen
huge swings in the Bitcoin price. Up to $5000 per BTC, then down to $3000 and
now up to $4000. The dip probably had to
do with the revelation of North Korea hacking South Korean bitcoin sites and
stealing the coins to buy military goods.
Bitcoin is not an
investment. It performs the role of money and the price is the exchange rate
against the dollar. That rate has shot up in the past several months. Either the
value of BTC is inflated or the dollar has collapsed. The dollar is holding
well against other money (Euro, Yen, Gold, etc.), so it isn’t a matter of a collapsing
dollar. BTC prices seem to have a lot of air in them.
Yes, I get that it is
a matter of psychology. Prices are a function of people’s greed and fear ---
the hope of rising prices versus the fear of falling prices --- and maybe I am
just one of the fearful. Yet, as governments seek to control the cryptocurrency
trade, I think more people will become afraid. And you know what will really
stoke the fear? A big power outage. Try accessing your bitcoins when you have no
electricity.
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ReplyDeleteFor me is bitcoin like tulips, it is just a matter time before the bubble says tulips, why do i say that? Because the bitcoin is not regulated. At this point i trust more in gold and greenback for the next couple of years.
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