Bitcoins are down another 10% this morning, following a -15% rout yesterday. The crypto currency has been on a terrific run and has certainly faired better than most skeptics had originally predicted. However, I am fascinated by this headlong dive into the concrete pool of reality, which, to me, is a classic tale of markets correcting overzealous behavior.
Unlike equity markets, which go up no matter what, bitcoins are behaving exactly how an overheated asset should — following an intitial rout and subsequent panic by top tickers trying to bail and mitigate losses.
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Tulips
Could be. One might have said the same thing about gold at the beginning of time. The recent drop after the run up isn’t necessarily abnormal.
I thought it was dead and buried after it dropped to $200 after running to over $1,000.
There are many believers and if they determine BTC has value, then it will. Apparently, many in China believe it does but it wouldn’t be the first time, nor the last, that they chased tulipmania.
Time will certainly tell.
Bitcoin has been doing this for 8 years. And it was still the best performing currency 6 of last 7 years.
Bitcoin is risky. What isn’t?
Disruptors are not predictable. Sometime they fail. But when they succeed early adopters profit.
$BTC preferred trading instrument / portal?
I use Coinbase. But do your own DD on these accounts. Many have lost everything. I set up a separate bank account specifically to fund a Coinbase account. It’s a pain in the neck to do and takes time. But I got in early (about $90). Not for an investment though. A friend got robbed in Australia. He lost everything, credit cards, cash and even his pants and shoes. He found a store in Darwin that took Bitcoin. I’ve had an account ever since. I seldom use it for purchases, but I have just to learn what it’s all about. It ain’t easy.
BTC is for real. It will outperform all currencies this year
Bitcoin often moves inverse to yuan. But PBOC went after Bitcoin too, for ‘abnormal fluctuations’: http://www.reuters.com/article/us-global-markets-bitcoin-idUSKBN14Q1M1