The price for Bitcoin has increased considerably one more time making some companies protect the value of the currency as completely un-bubbish. Such situation looks very comically.
The author of this article told that he has no enough possibilities to be a member of financial nerd community which owns approximately the Trillion Dollar Coin nowadays, so this is the reason for returning back on the Bitcoin bus. Bitcoin has a trade in the peak price points reaching almost $264 USD per coin. Putting this price value in the perspective, it is necessary to mention that in April the Bitcoin had a substantial increase to approximately $237, afterwards it decreased dramatically to around $69 in July and finally it returns to the $200 and rapidly approximates $300.
People always tell that this is not a bubble and it makes me feeling confused. Certainly, it is a bubble. There is too rapid growth of the prices on financial instruments which is “unmoored from any inherent value” which is increase by aggressive individual speculation. What can it be except bubble?
Joe Weisenthal who is known as The Stalwart, called Bitcoin a joke today, provides individual point of view. He tells that the currency has been rising for a few percent daily and this is substantiation that it is not situated in a bubble.
However there is one more point of view which is essential to bear in mind. There is information that Bitcoin is going to break ranks with its transaction volume. This moment does not look like that one which occurred in the past where there were two in loose unison.
The charts below provide information about bitcoin. To be more concrete, the first chart point out the price of a single Bitcoin in USD and the second one specifies Bitcoin transactions per day. It is necessary to follow them from left to write and see the change between them.
What’s going on?
There is no confidence in this situation, however there is an assumption that shuttering of Silk Road may lead to considerable drop in transactions of Bitcoin. Nevertheless speculative spirit makes the price of the currency increase. So, sinally, the current boom is even more bubblish than it was before, in the moment of increasing of the prices, then it cratered, and mostly it connected with the growth and decline of volume.
Bitcoin possesses a “value” which is not based on any type of government supporting or something like that, but it should provide short-term availability to all holders if it uses it. However if the use is decreasing, its value is essential to be followed. And it is very strange to see its value increase as its use dereases.