What’s going on with bitcoin?

Max Keiser and Stacy Herbert

Max Keiser and Stacy Herbert

  • Bitcoin hits $2,700, a 500 fold increase in five years and doubling in price since May 1st.
  • Previous surges – in 2011 and 2013 – have been followed by dramatic crashes
  • Significant premiums seen in Asia, over USD price
  • Total cryptocurrency market cap reached over $90bn, last week
  • Market remains small and volatile
  • Comparisons between bitcoin and gold are old, invalid and misleading
  • Both bitcoin and gold offer opportunities to diversify away from corrupt financial system

What’s going on with bitcoin?

Introduction

Last week the bitcoin price hit $2,700. A 500-fold increase in five years and a doubling in price since the start of the month.

Most people are aware of bitcoin tangentially, few are really conscious of it day-to-day and even fewer people are actually in bitcoin. Other significant cryptocurrencies, such as Ether and Ripple have also been going great guns and these are even less prominent in the public domain.

If something such as bitcoin with such a small market cap and very little public awareness is doubling in price in less than a month, what does it mean? Why is it behaving like this? Is it in a bubble? Is it a scam? Does it means that you should be getting in on the act? And what does it mean for its contemporaries, such as gold?

We take a brief look at why the price has been climbing, what this means for the future of cryptocurrencies and, most importantly, what this says about gold.

Read full story here….

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