Bitcoin is a cryptocurrency created in 2008. I have never belonged with team “gets it” when it comes to Bitcoin investing, but perhaps time has come to reconsider.
Many things are fictional, valid only because we all agree they are valid.
The entry which marks your bank account balance is sort of fictive. That is simply a number which exists in particular database, not a stack of dollar bills stored somewhere.
Your Bitcoin balance is also a number which exist in a particular database. Those numbers are only valid by consensus. Between your bank and you traditionally, and between you and world in the Bitcoin case. Cryptocurrency entries sit in a database which belongs to everyone. An open database which everyone can see discuss and validate each entry. Super secure, even dangerously secure because of this “everyone-must-agree” feature. A mistake made by everyone can never be undone.
I am triggered on this topic not because of the increased frequency of this topic in the news. But because of this:
Log price of Bitcoin and the GLD ETF
60D rolling correlation of between 10D holding period return
Correlation has been decreasing of late and some voices entertain Bitcoin to be the next bubble. I don’t know about that. Main point is that the Bitcoin currency looks to be establishing itself as a credible commodity, now closer to mainstream investing.