Monthly Archives: November 2013

Why the case for Bitcoin at $340 is not that crazy after all

Bitcoin Price Skyrocketing

Bitcoin price is currently over $350 per coin. The recent move far exceeds the previous highs of $266 seen in April. It appears that demand has been increasing in China.

Is this a bubble or is the price going even higher? The supply is very limited so bubble of not, I wouldn’t rule out $500 in the not too distant future. I will keep you informed of further bitcoin price moves.

Bitcoin Price Again Trading Above 200

In April of this year, Bitcoin hit an all time high of $266 per dollar. This was during the time of the crisis in Cyprus. If you recall, at that time depositors in Cyprus banks had trouble withdrawing money and ultimately some lost significant portions of their deposited funds.

At that time, as the Bitcoin price moved up, there was speculation that Russian depositors who used Cyprus to store money offshore, were now turning to bitcoin. After the crisis was resolved, the price declined more than 60%, falling below $100.

Since that time Bitcoin slowly recovered and began trading above $100. The price has since been trending upward with the price now $203.

Is Bitcoin headed for another crash or is it heading higher? Only time will tell, but I believe over time the trend has only been higher. The supply is very limited and Bitcoin offers an alternative to fiat currencies and is easily moved over the internet. It will be very interesting to see the price a year from now. Caveat: I own a couple of Bitcoins that I purchased around $100. I basicly bought them and socked them away, but I did so knowing the price could one day be closer to 10 than 100.

I believe the future of Bitcoin depends on more widespread adoption. That being said, transactions denominated in Bitcoins already number in the billions of US Dollars.

%d bloggers like this: