Bitcoin has been touted as the new currency. Since government legal tender notes may not mean much if they are all bankrupted and we really don't want to go back to using gold to barter trade, one revolutionary solution might be bitcoin which is based on the newest, baddest blockchain technology that ensures safe encryption, traceability and eliminating the need for intermediaries like banks, credit card companies that had creamed more than their fair share of transaction since time immemorial.
Bitcoin had done crazily well over the last four years. It is said that someone who had invested at the start for $100 would be a millionaire today. But again, it looks like this is gonna be a classic bubble where things will become real ugly.
Here is another representation of the classic bubble chart where the final stages of greed, delusion and new paradigm hits. As things turn, one would see denial, fear and capitulation. We have seen this unfold many, many times but it's hard to identify where we are in the midst of things. Bitcoin could see the crash soon but the global markets today might be at the enthusiasm phase, we ought to be careful going into 2018 and 2019.
Source: FT, Dr Jean-Paul Rodrigue, Dept of Global Studies and Geography, Hofstra University and Google
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