The bubble in Bitcoin?
1 Bitcoin = $259 on Apr 10, 2013 MtGox
1 Bitcoin = $13.45 about Jan 2013 Blockchain
A 19x price increase in 4 months.
Is this a bubble?
ZeroHedge has a good analysis of Bitcoin
There is present a reflexive pattern of people buying because prices are rising, and prices rising because people are buying. The myopic are extrapolating the price trend of the past four months, which they deem is normal, and in so doing they exacerbate it to the upside, thus attracting even greater fools. The inflection point will come when the continuity of bullish thought is broken.
When prices for any asset go parabolic, it does technical damage to a chart. It is sort of like someone deciding to go full speed in the middle of a marathon. Surely, one would look good for a few minutes. However, at a certain point one would inevitably collapse, with the possibilities of finishing the race being greatly diminished, let alone doing as well as they would have otherwise.
Tags: bubble in bitcoin, bitcoin price increase