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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.

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