The Bitcoin Bubble, Or Is It? Two Charts, Historical Price Movement, and the Conspiracy

via chycho

I wish I wasn’t making this post and I hope I’m wrong. I love the concept of Bitcoin and the prospect of the decentralization of power brought about by the introduction of “an open source peer-to-peer electronic money and payment network” and the inevitable collapse of fiat currencies that are controlled by central banks which are in the business of transferring wealth from main street to Wall Street.

I’ve been tracking bitcoin for almost three years, since it was trading for less than a dollar. I even mined it a little a couple of years ago and recommended friends to buy them. Now that bitcoin has breached $1,200 and counting, would I still be giving it a buy recommendation? Absolutely not. Would I be recommending friends to keep most of their bitcoins at these valuations? Absolutely not. I would be telling them to sell almost all of their holdings, letting 1% ride. This is also one of the great features of bitcoin; very few early adopters should still be holding in any type of market like this.

Will bitcoin reach ten thousand, fifty thousand, or a million dollars? Will it do it in a few weeks, a few months, a few years, or a few decades once the full impact of our bubble economy is felt and the fiat currency devaluations begin? That’s anyone’s guess.

Below you will find a bitcoin chart for the last 2 years, and Jean-Paul Rodrigue‘s chart of the four phases of a bubble. The similarities are uncanny.

click image to enlarge – source

click image to enlarge – source

Does this mean that bitcoin and other secure digital currencies are not a valid form of currency? Absolutely not. Does this mean that they do not have a future? Absolutely not. I actually believe the opposite. The future of commerce is digital, global, decentralized, open source and secure. It’s everything that bitcoin offers; I just think we’re in a bubble.

Full article at chycho

The post The Bitcoin Bubble, Or Is It? Two Charts, Historical Price Movement, and the Conspiracy appeared first on disinformation.

Source: Disinfo