Nothing New about The New Bitcoin Price All-Time High

Nothing New about The New Bitcoin Price All-Time High

‘Another all-time record high’.

It’s a phrase that’s been used to describe bitcoin’s amazing surge this year more than once. The digital coin is now valued at US$4,655.63, or AU$5,845.84. It’s up an amazing 366.6% in 2017. And it could climb even further before the year ends.

Ethereum providing better returns..

But bitcoin isn’t even the highest returning digital coin this year. Ethereum is. As reported by Bloomberg:

‘…lesser-known competitors have seen even bigger gains, such as the more than 4,000 percent increase for ethereum.

While some believe bitcoin is in bubble territory, Bloomberg reporter Julie Verhage disagrees.

Bespoke Investment Group contrasted the rise in bitcoin with infamous bubbles such as the tech market in the late nineties. There’s almost no comparison,’ Verhage writes. ‘Tech stocks rose just over 1,000 percent over the entire course of their bubble, and bitcoin is already up more than twice that.

Take a look at the graph below. It shows various speculative rises, with bitcoin for comparison.

Bubbles Vs Bitcoin Price - 30-08-17

Source: Bloomberg

As you can see, bitcoin has appreciated amazingly fast. The question is, will it last?

It really all depends on its acceptance. Will we be comfortable to use our bitcoin wage at the supermarket instead of our credit card? Will bitcoin be backed by anything in the future other than its usefulness?

You probably have your own questions about bitcoin. If you want to find out more check out Money Morning’s new report, ‘The Secret World of Bitcoin’.

Regards,

Härje Ronngard,

Junior Analyst, Money Morning


Money Morning is Australia’s most outspoken financial news service. Your Money Morning editorial team are not afraid to tell it like it is. From calling out politicians to taking on the housing industry, our aim is to cut through the hype and BS to help you make sense of the stories that make a difference to your wealth. Whether you agree with us or not, you’ll find our common-sense, thought provoking arguments well worth a read.

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