Actually just over $7,000!
Traditional investors just donât like or trust cryptocurrencies. Jamie Dimon, CEO of JPMorgan Chase, says he wants nothing to do with Bitcoin (âa fraudâ) and âif you're stupid enough to buy it, you'll pay the price for it one day.â Ray Dalio, owner of Bridgewater Associates and the worldâs most successful hedge-funder, simply says âitâs very much speculative â¦ itâs a bubble.â
Almost as if it took encouragement from Dalioâs remarks, Bitcoin shot up Thursday to a new high of $7,354. That represents a 29% increase over the past week - an annualised 1,500%. Whatâs your CD paying right now? The atmosphere around Bitcoin, and other blockchain performers such as Ethereum, might be likened to a frenzied casino, although that wouldnât be quite accurate. In a casino, the odds are carefully calibrated, and itâs rare to exit with winnings over any sustained period of time. Casinos exist because you cannot beat the house. With cryptocurrencies, the House is who, exactly? Itâs certainly getting beaten, or perhaps itâs a victimless crime. Buying (not the same as investing in) Bitcoin is maybe more like buying a lottery ticket in a lottery where every ticket is a winner. Under such conditions, youâd have to be mad not to.
Itâs true that after rocketing up to above $7,000, Bitcoin quickly re-entered the Earthâs upper atmosphere and fell by $650, singeing a few rookie astronauts. But itâs not a head-and-shoulders graph yet, more of a jagged, upward, ever-upward Alp. In July 2010, one Bitcoin cost six cents. Weâve since seen a 9,689,900% increase - itâs been a seven-year one-way bet. Ask Julian Assange. Back then, when the Obama administration closed down WikiLeaksâ bank accounts, Assange put everything into Bitcoin. Now he has the spare cash to offer $100,000 rewards for evidence of Democratic Party wrongdoing. If Bitcoinâs a bubble, itâs the most interesting one the worldâs ever seen.