What was around US$1,500 a week and a half ago is now worth US$5,015. Thanks to completely forgetting about a Bittrex account, we are sitting on an 8,368% return on our initial US$59.10 outlay.
The further away from ‘normal’ a prediction is, the less our brain is inclined to believe it. That anchoring mechanism is then backed up by a second survival trait. The tendency to stay in the safety of the herd. The result?
If you think the mainstream has become addicted to bitcoin, wait until they get their first taste of altcoins. You thought 2017 was big, you ain’t seen nothing yet. 2018 is flat out going to blow the roof off.
Someone wants to give you $1 million dollars. You can accept it in either bitcoin, or the Venezuelan bolivar. So, which one would you choose? The ‘real’ currency? Or this ‘fake’ internet money?
The latest to downplay the digital coin is Philip Lowe, governor of the Reserve Bank of Australia (RBA). Lowe called bitcoin a ‘speculative mania’. But of course that’s what you’d expect a central banker to say.
Litecoin price has skyrocketed in the last week. Jumping 111% on the back of the bitcoin futures market opening in America. This strong, positive relationship makes sense. Litecoin is essentially a 'spin-off' of bitcoin.
Traders in the bitcoin futures market feel like they’re at a free all you can eat buffet. According to Bloomberg: ‘Cboe (Chicago Board Options Exchange) Global Markets Inc.’s new contracts were priced as much as 13 percent higher than bitcoin itself since trading began Sunday night.’
The introduction of bitcoin futures could go either way. In the short term, it could drive the price even higher as speculators go for leveraged gains. But longer term (which in bitcoin world means a few weeks…or maybe even days) the impact could be negative.
I’m sure you’ve seen them around in the financial commentary. The references to ‘tulip crazes’. The ‘bitcoin is a bubble’ charts. You see, they’re comparing apples with oranges. Blinded by their internal biases, they’re not seeing what’s really happening.
Bitcoin is emerging unscathed from its first morning on the American futures market. Listed on the Chicago Board Options Exchange, the world watched on with clenched jaws as the market opened.