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Bitcoin will go the way of tulip mania

If you buy bitcoins at this price level then you are a sucker. Seriously.

If you buy bitcoins at this price level then you are a sucker. Seriously.

The value of Bitcoins now exceeds that of the currency of twenty countries. The value of a bitcoin is soaring in an unsustainable manner and just hit a new high.

Bitcoin prices could continue to soar or they could crash, says Business Insider, in a detailed article explaining what is happening.

If Bitcoins become an accepted currency everywhere in the world, if governments don’t intervene and make Bitcoin transactions illegal, and if the supply of Bitcoins remains finite (if the systems aren’t hacked or the anonymous creators don’t get greedy and decide to create many more). then Bitcoin prices could go much, much higher.

Me, I look at that chart and think, this is a bubble about to crash. Prices do not go parabolic forever. They just don’t. Also, Bitcoin appears to have no central pricing authority and, as mentioned, the creators are anonymous so there is essentially no recourse if things go bad. Hey, they could be organized crime, for all we know. And governments will start to intervene. They don’t want competition to their gamed creation of money.

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