Bitcoin could go to $1 million use of bitcoin

Bitcoin could go to $1 million use of bitcoin

Eddie adams /

AP

The value of the electronic currency bitcoin has hit a new high

Of $340.

This is not surprising.

Earlier this spring, when

Bitcoin was in the middle of its last price spike, I raised

My bitcoin target to $400.

This was an 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. As is

$1,000. As is $10,000 or $100,000 or $1 million.

And as is $0.01.

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. Right now, because bitcoin’s price is

use of bitcoin

Going up, and bitcoin is in relatively short supply, people are

Willing to pay $340 for it. And the ever-increasing demand for

Bitcoin will keep driving the price up until people don’t want to

Buy or hold it anymore.

At that point, by the way, unless bitcoin has become widely

Accepted as a legal means of exchange (as money), the price of

Bitcoin will collapse. 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.)

I have explained why

Bitcoin speculators are just laughing at everyone who thinks they

Are idiots for buying bitcoin. (because bitcoin’s price could

Theoretically rise 1,000%, 10,000%, 100,000%, or more, whereas

The most you can lose on your bitcoin investment is 100%)

use of bitcoin

And I have explained that bitcoin prices could go vastly

Higher from here. (I first said this

When bitcoin was $90. It’s just as true today, at $340.)

I also think, however, that that bitcoin will probably prove to

Be a gigantic bubble, like

Beanie babies, pogs, or, yes, tulip bulbs. Bitcoin has all

The hallmarks of bubbles, including:

• A good underlying story

• A sexy new-ness that requires some work to understand

• A small and finite supply

• A fundamental value that is highly subjective and,

Therefore, justifiable at almost any level

• A high level of risk and excitement associated with trading

It

• A passionate community of early adherents who are convinced

Of their own brilliance and

Lash out defensively at anyone who dares suggest that they

Are, hallucinating. (don’t believe this? Diss bitcoin on

Twitter and see what happens.Use of bitcoin

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. Bitcoin isn’t.)

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.

Having said that, I want to be clear about something:

In the months and years before we know the ultimate fate of

Bitcoin, the price could do absolutely anything.Use of bitcoin

There is no limit to the price that bitcoin could

Attain.

There is no theoretical difference between a price of $1 per

Bitcoin and $1 million per bitcoin. 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.

How high?

It is perfectly reasonable to think that bitcoin’s price could go

To $1 million or more.

That’s not a prediction. It’s just a fact.

(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. And I’m not

Encouraging speculation. I couldn’t care less whether you buy

Or don’t buy bitcoin.)

So, there, I’ve said it.

Bitcoin is probably a gigantic bubble that will leave its early

use of bitcoin

Religious devotees looking and feeling like fools.

But in the meantime, bitcoin could make people dynastically rich.

Because the price of bitcoin could go all the way to $1 million

Or more. Just as it could go (back) to $0.01.

SEE ALSO:

Bitcoin is A joke

Get the latest bitcoin price here.>>