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