The Bitcoin saga continues
We have commented on a few occasions about the Bitcoin bubble (and we are not alone – Warren Buffet recently characterised it as “rat poison squared”). Reuters reported that today Bitcoin traded at US$6,763, down 65% from its December 2017 peak. This is also an 11% drop since Friday, after the South Korean Coinrail Bitcoin exchange was hacked and apparently lost about 30% of its accounts. If you ask us, we think that US$6,763 is still a stiff price for something that is virtually worthless. Warren Buffet said that “buyers of bitcoin thrive on the hope they’ll find other people who will pay more for it.” We couldn’t agree more. Like all other bubbles, this too will come to an end when the majority of people will no longer be willing to pay more for it.