This was the headline on November 29, 2013: Bitcoin hits record $1,242 as it nears value of ounce of gold.
Today, gold is about $1200. One bitcoin sells for $335.
Here is what I published on November 29, 2013: Bitcoins: The Second Biggest Ponzi Scheme in History. Here is how I ended it.
There has to be an economic justification for a capital investment, and there is no economic justification of buying Bitcoins as an alternative currency. That was how Bitcoins were initially sold, and it was impossible as an economic concept from the beginning. The Austrian theory of money shows why.
I do not invest in capital that has no economic justification other than the greater fool theory. There are too few fools to keep the scheme going.
Bitcoins are not illegal. They should not be made illegal. They should merely be avoided.
The price of bitcoins peaked on November 29, 2013.
Here is what I wrote on December 3, 2013: Bitcoins: The Road to Investment Hell Is Paved With Good Intentions.
We don’t hear much about bitcoins these days. A year ago, they were big news. The bloom is off the rose. So is the boom.
After a crash like this, an investment takes years to recover. It may never recover.
If you want untraceable money that holds its value pretty well, you can get it at your bank’s ATM.
If you want untraceable money that you can buy things with at any retail outlet, get crisp, new $20 bills.
When it’s Federal Reserve Notes vs. bitcoins, go with Federal Reserve Notes.
Money holds it value over time. Bitcoins do not.
You buy money with no commission. You must pay a commission to buy bitcoins.
Money must be widely recognized as money. The public has never bought anything with bitcoins. The public does not sell anything for bitcoins.
Bitcoins are not money. With its track record, it shows no signs of becoming money.
Fads come and go. This one has gone.