Nov 29 2013 / RT – After more than quadrupling in one month, many question whether bubble trouble is looming for bitcoin.
Like it or loathe it, bitcoin is an entity of extremes. Not merely its value oscillations but also the vehemence with which its acolytes support it and indeed its detractors seek to destroy it. BTC supporters are ecstatic with a vertical leap from barely 215 bucks to over 1000 dollars during November alone. Prices never move in a pure straight line; rather they tend to ebb and flow like tides and emerging currencies are often very volatile. Indeed, bitcoin has been more volatile than most during its 4-year existence. Moreover markets can remain irrationally priced longer than contrary investors can remain solvent.
Readers vested with a dose of realism will recall great historical bubbles like Tulipmania, where Holland became obsessed with flower bulbs imported from Turkey. Vast inflation in blooms sadly led to bust.
Therefore the massively balkanized world of bitcoin opinion will likely remain charged. In fact, bitcoin may yet have another collapse at which stage obituaries will be written once again (as they were in 2013, 2011, 2010 and…Well, BTC was only born in 2009)…… Read more
http://rt.com/op-edge/bubble-trouble-looming-for-bitcoin-469/
