Thursday, 9 June 2011

Bitcoin Economic bubble ready to pop?

Taking a quick turn of my usual blogging angle i'm going to talk about the huge bitcoin economic "bubble" that has formed.

So, In case you haven't noticed. Bitcoins are a form of online currency and in the last week, their value has shot through the roof.

"Bitcoin mining" Using your GPU (or CPU) to solve hashes to produce bitcoins, has just become very profitable indeed. People with bitcoins are now easily selling them for $30 a piece. Many miners on youtube have made videos of them selling 200-300 bitcoins for thousands.

But, will their value hold? Is it wise to sell now, or wait another week for the value to increase? The truth is nobody knows, but a lot of experts are expecting the value of bitcoins to drop in the coming days.

The picture below shows  a comparison of the current bitcoin status to a previous economic bubble and the phases it goes through.



17 comments:

  1. That chart is awesome ! It relates to all the other financial bubbles over the years - great stuff ! Keep up the good postings !

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  2. It is a pity that I have started collection bitcoins just a week ago. :)

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  3. That's what I've been hearing! I'll hold off on the bitcoins for now just in case.

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  4. Bitcoins are a little iffy to me, I would never invest in something that's true value is nothing and can easily just drop.

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  5. Bitcoins really scares me, you know eventually it's going to peak and then crash, if you were lucky enough to get in really early you're in great shape but someone like me would be a fool to try and get in on it now.

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  6. Bitcoin is really getting a lot of attention lately!

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  7. I had so many bitcoins months ago that I foolishly spent, If only I had saved them I would have profited so nicely. Damnit.

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  8. Never heard of bitcoin, gonna check it out.

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  9. This bitcoin seems to be rather interesting
    Will check it out these days

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  10. Time to do some dirty trades on the deep web, lol.

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  11. Interesting. I might invest into it, but im going to wait for the price to drop.

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  12. certainly looks like it, cant stay that high forever

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  13. How much you think 00.02 btc is worth? lol!

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  14. im still not sure about bitcoins..lol

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  15. I still don't really understand what bitcoins are to be honest. Interesting topic, though
    +followed

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