Posted: Feb 16, 2019 7:29 am
Bitcoin traded below US$1000 for its first nine years. After a huge rise between May 2017 and February 2018 it did a few dead cat bounces, but still trades well above its initial levels.
Like all the other cryptocurrencies, bitcoin is backed by absolutely nothing other than expectation. It is not kept afloat by any economy or product. With tulips there was at least one tangible item money was exchanged for, and they remained at the bottom since 1637.
If I had any intention of speculating with bitcoin at all I'd wait for a few more bounces until bitcoin settles down to trading around, say, the $350 mark before buying into it.
Like all the other cryptocurrencies, bitcoin is backed by absolutely nothing other than expectation. It is not kept afloat by any economy or product. With tulips there was at least one tangible item money was exchanged for, and they remained at the bottom since 1637.
If I had any intention of speculating with bitcoin at all I'd wait for a few more bounces until bitcoin settles down to trading around, say, the $350 mark before buying into it.