Has Bitcoin jumped the shark?

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by Chris Becker

The new gold? The future of currencies? The proto-not printable money? However you describe Bitcoin, it seems there’s only one way to describe its trajectory: up!

Last night saw Bitcoin move over 6% in a single session to settle above a new record high above $4600USD:

Chart via ZH:

With volumes going alongside US stock futures in what looks like straight algo trades:

Its usually this time in a bubble phase that you see a rush of new buyers. I had that “BBQ” style conversation with a few friends over the weekend, some of whom had bought Bitcoin when it was only two digits and sold out in the three digits and some who had never bought at all. They all wanted in, so they cornered the FX trader in the room…

Bitcoin is a massive experiment that has the potential, both technologically and monetarily to disrupt some big players. It won’t push aside the gold hoarders, but this recent price action smells decidedly like that of gold before it tried to break free for the $2000USD per ounce mark in a period of heightened volatility and uncertainty:

Caution must prevail here, even the head of Bitcoin says to hold your horses and also don’t think that you have similar anonymous protection like you also overplay the assuredness of physical gold. From the BBC: