Menu IconA vertical stack of three evenly spaced horizontal lines. This was 1 dollar to bitcoin inside joke — I don’t have a Bitcoin target.
But I was getting at a more profound point. 400 is a perfectly reasonable target for Bitcoin. This is because Bitcoin has no intrinsic value. Bitcoin’s adherents refer to it as a “store of value,” but Bitcoin is only a “store of value” because, right now, its price keeps going up. Unlike gold or dollars or other things that have widely accepted utility, Bitcoin’s price is currently determined entirely by what someone else is willing to pay for it. And anyone who thinks the price of Bitcoin can’t collapse all the way to zero is delusional. I have written extensively about Bitcoin.
I have explained why Bitcoin is the “perfect asset bubble. Because there is no real way to value it. And I have explained that Bitcoin prices could go “vastly higher from here. Diss Bitcoin on Twitter and see what happens. Bitcoin Zealots are more aggressive and sillier than Apple fanboys. I have also described some of the major risks that could break the Bitcoin spell and lead to a price collapse.
The biggest of these, I think, is that Bitcoin won’t ever become widely accepted as a means of exchange — either because governments ban it or because it remains complicated and shadowy. One of the biggest advantages of “dollars” is that they are accepted everywhere and are extremely easy to use. I do think the world is ready for a simple, global, electronic currency, and that Bitcoin has a shot at becoming that. But this success is the farthest thing from guaranteed.
In the months and years before we know the ultimate fate of Bitcoin, the price could do absolutely anything. There is no limit to the price that Bitcoin could attain. The only thing that will determine Bitcoin prices is what people are willing to pay for Bitcoins. And if enthusiasm about Bitcoin continues to move beyond a small group of digerati, cryptologists, and hard-money fanatics, Bitcoin’s price could go vastly higher. I have no idea what Bitcoin prices are going to do. I also don’t own Bitcoin, so I don’t care what the price does.
Bitcoin keeps coming back in the headlines. With any Bitcoin price change making news and keeping investors guessing. In countries that accept it, you can buy groceries and clothes just as you would with the local currency. Bitcoin is divorced from governments and central banks. It’s organized through a network known as a blockchain, which is basically an online ledger that keeps a secure record of each transaction and bitcoin price all in one place.