An Exceptional Week For Bitcoin
The talk of the town just gets more controversial this week.
Melt up to $200.
Then zoomed to $260 before crashing down hard to $110.
Bounced back to $200 before another wave of selling so powerful that the main Bitcoin market has to halt its trading.
Traded as low as $70s before recovering quickly back to $140.
We are not talking about 10% swings here. We are talking about 50% drops and 100% rally in hours over the past few days for Bitcoin.
As mentioned in my previous article on Bitcoin, it is not for normal people yet. The volatility we just witnessed confirms this point. As a currency, normal people probably cannot stomach such swing without suffering emotional turmoil. Bitcoin just delayed its chance to become a currency replacement after this incident.
It is, however, definitely a great toy for speculators and gamblers.
Reportedly, someone has organized a structured fund on Bitcoin. When it is ready, Bitcoin will be shortable too. It will be very interesting to see how that works out in coming months.