As the biggest IPO of all time gears up, the price of gold and Bitcoin is on the slide with some once more predicting the imminent demise of our experimental alternative currency.
What is really happening, is that we are learning what people really mean when the say that Bitcoin is volatile. They do not mean that the price rises, but that it falls. This is nothing new, but is just part of this stage of Bitcoin’s development: It is still a niche market that can be moved by relatively small amounts of transactions. Some are saying, that what we are seeing is people pulling money out of hard assets to get it ready to dump on Alibaba. This may or may not be the case, but we are confident that a relatively slight swing in investor sentiment can and will move the Bitcoin market to new heights.
One of the reason for our confidence is the inherent weakness that we see, and that is largely ignored, in the broader economy. To quote William Butler Yeats, the center cannot hold. Just as they did in 2008, an unexpected event will drive the markets lower and we will see people scrambling to find a safe haven for their equities. It is our hope that the infrastructure for Bitcoin will be strong enough by that time to welcome all those new investors.
We found the following commentary on the current economic situation on Burning Platform and we felt it was poignant enough to share:
Market hits new all-time high. Alibaba IPO is a can’t miss. The new iPhone 6 will change the world. Jobs are plentiful. Home prices are rising. Household net worth is at a new all-time high. Grandma Yellen has firm control over the economy and our financial markets. The vaunted American military are going to defeat those dastardly ISIS terrorists in Iraq and Syria. The shale oil boom is going to make us energy independent. The world is our oyster. What could possibly go wrong?
**Get started with Bitcoin at Coinbase.**