Bitcoin’s track record is a lot like a manic-depressive illness, defined by extremely high peaks and incredibly deep valleys. Judging by its latest rally, the popular cryptocurrency’s volatility isn’t going to normalize anytime soon.
As of writing, Bitcoin is trading just north of $16,000 per coin. Remember, the cryptocurrency just got back to the $1,000 mark in January following a post-bubble period that lasted a few years and kept values down around $500. Bitcoin picked up momentum in the spring and has never really looked back.
Just one week ago, everyone was flipping out when Bitcoin hit $10,000 for the first time. Again, that was just last week! Insane.
The news comes on the heels of Valve’s announcement that it would no longer be accepting Bitcoins as a payment method due to high transaction fees. Perhaps they’re already regretting that decision?
Part of what makes Bitcoin so appealing is the uncertainty and sheer risk involved in investing. It’s literally anyone’s guess as to what will happen next. Will we see a $20,000 Bitcoin… perhaps by the end of the week? Where’s the ceiling? When should you cash out and diversify? Will the proverbial bubble finally pop and send values plummeting?
We’ve never seen anything like this. About the only thing that can be guaranteed is that there will be lots of big winners and losers in this game. It all comes down to timing (and I suppose, a bit of luck). If you’re on the roller coaster, just remember to enjoy the ride!