Bitcoins are here to stay!
In March I called Bitcoins ‘The Jurassic Park of Currencies‘. I owned it in the 40’s for a few weeks and of course sold way early in the 60’s (all my posts here) as I did not take the time to understand the trend and possibilities at the time.
The government was supposed to have crushed Bitcoins by now. Just this week they seized the big drug site ‘Silk Road’ that sent Bitcoins tumbling below $100. I mean no drugs no Bitcoins correct?
Nope. Bitcoins are trading north of $135 and the price pre ‘Silk Road’.
No doubt, the market is small enough that Bitcoins price can be manipulated, but it is also possible that the technology and global landscape have created a perfect storm for a new type of Gold Standard. Bitcoins are global, volatile (so is gold) but reliable at the moment and easier to store than gold for a tiny fraction of your portfolio you might want to dedicate to alternative currencies.
Fred Wilson, who has made his first investment in the Bitcoin space had a video up on his site today called ‘Bitcoin Under the Hood'(I will need to watch three times as the guy talks fast):
Bitcoin demand is not in a silo. It is part of the fast changing global macro environment.
The $MACRO (financial) world is more fun and interesting than ever. We discuss it all day on Stocktwits. Yesterday in my weekly ‘Stocks and Scotch’ we had on Mark Dow who was an original IMF’er and amazing global macro thinker and money manager. He has amazing insights into the Gold trade and the interest rate trade, inflation and deflation.
“Mark can come on and tell his story uninterrupted”–funniest quote of the whole interview. Let Mark Dow speak. He’s much more interesting than Howard or that Swedish kid.
“We have short memories.” Classic!