Money Minute – November 30 2017 Bitcoin Boom

Bitcoin Boom

The price of Bitcoin went through $10,000 US for the very first time 24 hours ago.

But sorry – that’s old news because last night, the price of Bitcoin went through $11,000 for the very first time.

Yep – $1000 it made overnight, close to $15,000 Aussie dollars.

It was big news 10 months ago when Bitcoin went through $1000 dollar.

In the world of cryptocurrencies, 10 months is like 20 human years. It has moved very, very fast. This time last year for example, l you could’ve bought a Bitcoin for $371 US. If you’d been lucky, then you would be ahead 27 times. Its great if you did it, but then again – how many times have you backed a horse with odds of 27 to 1. Not often.

In financial markets, doubling your money in one year is unusual. 27 times is completely off the charts.

The reason for Bitcoin’s rise is more people are backing virtual currencies, and what’s true is that in future people will use cryptocurrencies. Think about already – using your phone to pay for goods, so its just a tiny step away.

But with Bitcoin specifically, prices are rising because of its shortage of supply. There’s a maximum 21 million Bitcoin on issue but a lot of people chasing them right now.

Supply and demand says that price will go up.

But for how long? That depends on the demand for this virtual currency.

Because of if at any stage prospective buyers look at Bitcoin and see the Emperor has no clothes, well the whole thing will come tumbling down.

In the meantime, the true believers who bought in are gloating, and well – they should!

It’s not often a 27 to 1 shot has one for you, especially in the financial markets.

But if you’re thinking o buying today – always remember the greater fool theory!

That is – if you buy, you are relying on a greater fool to buy your Bitcoin at a higher price in the future.

Mind you – I said that three weeks ago when the Bitcoin was $7,000.

Markets

The Dow Jones up 93. The Dollar 75.7 US Cents.

Quicklinks to recent Money Minute progammes

Money Minute – December 4 2017 Rates on Hold

Money Minute – December 1 2017 Banks Commission

Money Minute – November 29 2017 Economy is ‘Robust’

Money Minute – November 24 2017 Myer Crisis Meeting

Money Minute – November 22 2017 Tourist Dollar Battle

Money Minute – November 21 2017 Who Pays for Tax Cuts?

Money Minute – November 20 2017 Bank Royal Commission?

Money Minute – November 17 2017 Job Prospects Brighter

Money Minute – November 16 2017 The Big Squeeze

Money Minute – November 15 2017 High Noon At CommBank

Money Minute – November 14 2017 Crisis Bites

Money Minute – November 13 2017 Where’s the Money?

Money Minute – November 9 2017 Teflon Bank

Money Minute – November 8 2017 Markets Fire Up

Money Minute – November 7 2017 Rates, Cup and Fights

Money Minute – November 6 2017 Tax Scandal Breaking Today

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