So what’s going on? If you look at the trading volumes of Bitcoin most of the trades are for completely footling amounts of a few hundred bucks. But there are a lot of them and they don’t seem to care what price they buy at. I’d imagine these are the teccy speculators, the students and the Chinese gamblers. Then there are some relatively large trades where half a million dollars pumps the price up dramatically in five minutes. But $500,000 is nothing to the Winkelevii – the Facebook angels turned Bitcoin evangelists.
This is a pump and dump for sure. Where to exit? $1200 is the record high – so how does $1500 sound?
If we Brexit next week Sterling is going to Dollar parity or worse so this is my only hedge, apart from the foreign currency in my wallet.
It’s been a while since any of my investments had a curve that looked like this. What is behind the current surge in Bitcoin seems a bit of a mystery. Some say the Chinese have gone mad for Bitcoins, frustrated by the low returns they are getting on cash. I could well believe it – certainly the last time I visited a casino the Chinese were heavily over-represented amongst the clientele and Bitcoin is certainly a gamble. Others say that immanent halving in the rewards for Bitcoin miners will cause supply to dry up.
Whatever the reason, a poll of my friends (none of them averse to gambling and all pretty tech savvy) revealed that I am the only Bitcoin owner amongst us. So can we really call this a bubble yet?