As boom markets go, Bitcoin is probably the biggest in living memory. Way, way, bigger than the dotcom bubble or the gold price rally of recent times
Ah, the soothing sight of red numbers (see price chart from ice3x). “Soothing? Red numbers?” I hear you cry out in confusion.
Because you bet the farm, or at least the mortgage on the farm, or your daughter’s university studies, on Bitcoin and now you only want to see green, green, green!
Bitcoin, like some latter-day digital saviour, must rise up and bring you wealth and power, bushels of money pouring out of the ether into your coin holdings. You are not an investor, you are a believer! Bitcoin is your mammon and you are on your knees worshipping, right?
Let me explain why red numbers are good. Bitcoin needs to transition from being a phenomenon to becoming a properly tradeable commodity if it is to avoid the fate of the Dutch tulips, doomed to be mocked forever as the flower of greed.
The fact that the market rose above R178,000 per coin and then paused to hover around R155,000 is a sign that it is behaving rationally, exploring ceilings, asking what its price should be.
We may have reached the ceiling and begun the long road down to a true level or this may be a pause before the rise continues. Fascinating.
The mania over Bitcoin is well captured by this Wall Street Journal article which reports that “even grandma wants in on the action”.