Just a few weeks ago, Bitcoin was around $900. Today it’s $2200. A few days ago it was as high as $2700. What the hell? It’s now hundreds of dollars past gold, which is still floating around $1250 as it usually does.
I check the values of certain indexes and commodities every morning, and I’ve been stunned at bitcoin’s recent rise. It jacked up in value about $100 every day for several days in a row. I own a little bitcoin as a speculative investment, and I’m very happy.
There are several reasons for this surge:
1. Japan recently passed legislation to allow retailers to accept bitcoin as currency.
2. South Korea’s bitcoin usage has surged.
4. China’s recent credit downgrade.
This all bodes very well for bitcoin.
Ethereum, the 2nd biggest cryptocurrency behind bitcoin, has also shot upwards. It was just $18 in early March. Now it’s $150(!). God damn!
My opinion regarding bitcoin remains the same. If you want to get some, go ahead, but realize it’s a speculation, not an investment. Also remember that buying something as the price is going up is usually a bad idea. You want buy something while the price is going down. Bitcoin enthusiasts say that bitcoin is already at a low, but how do they know for sure?
My guess is that bitcoin’s future is 60/40. 60% chance it becomes a de facto currency standard, explodes in value, and everyone who owns some now will be very happy. But there’s at least a 40% chance it’s actually MySpace, a cryptocurrency 1.0, and a 2.0 like Facebook is right around the corner that will eliminate and replace it. (This 2.0 could be Ethereum, which is why I own some of that too.)
Which will it be? I don’t know, but as you can see, I’m leaning in the former’s direction. The good news is that as the Western world continues to collapse, things like bitcoin will reach higher values.
If you can’t stop the collapse (which you can’t), you might as well profit on it. 🙂