A week ago, a bitcoin cost about $290. Today, $190. The price went through $250 like a hot knife through butter.
This is not a currency. This is a speculative market supported by programmers under age 30 with hardly any money.
This financial sinkhole has moved from over $1,200 in late 2013 to this.
A currency has to have stable value. This crapshoot speculation has no trace of stable value.
This collapse will not be forgotten. Who is going to buy bitcoins as a “store of value”? No one. Anyone who says that bitcoins are the currency of the future should stop smoking the stuff that $100 bills can buy in certain unlicensed markets, but bitcoins no longer can.
Bitcoin promoters will say, “Someday, someday.” A year ago, they were heralding this disaster as the currency of the future.
They should change the product’s name from bitcoins to enrons.
In late 2013, you could have bought gold at $1,200. I recommended to my subscribers that they do so. I also said that bitcoins were utter nonsense as an investment. I published this on the day the market peaked. I have not changed my mind on either point.