Home > Miscellaneous Musings, Predictions > The terrible “twos”

The terrible “twos”

Bitcoin is around 2 years old and is going through the same growing pains any 2 year old endures.

Mt Gox has blown up.  But note – Bitcoins are still trading at reasonable prices on other exchanges, which is quite surprising given the publicity over Mt Gox.

And note that Mt Gox apparently ran a fractional reserve system.  So even with Bitcoin the gremlins and shysters appear.

What to do?

1. Be careful what exchange holds your bitcoin, just like being careful about which bank holds your cash.

2. If you have substantial holdings of savings in bitcoin, I’m amazed.  You don’t have better places to park and grow your money?  Like a Caribbean island?

Bitcoin will still be around.  Just like fiat money is still around.  It’s “true” value (after the attacks and the government propaganda and the hysteria have died down) is yet to be determined.

The lesson?

Never buy in the middle of a bubble.  Buy at the beginning or at the end.  Bitcoin looks good value now.  So does Argentina.  So does Ukraine.

UK property and Australian properties do not.

  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: