The announcement that we had a few weeks ago seem like a distant past. The flash crash that followed seems like a modest correction. The eerie calm that followed is all but forgotten.
The story that has been sold ever since it was admitted by insiders that Bitcoin will never work appears to have worked its magic. Bitcoin will never be everyday currency. Instead it will be like gold, only better.
This is complete nonsense, but Bitcoin has nevertheless doubled in price since this announcement.
This idea that old technology is better than new technology has been so successful that Bitcoin is now outperforming its newer rivals. It appears to be sucking in money from other crypto-currencies. Even gold appears to be dumped in favor of virtual gold. Every time Bitcoin makes a ten percent move up, gold goes down by a percent.
How long this madness is going to continue is anybody's guess. However, we most definitely seem to be heading for a blow off top. When "investors" in this "virtual gold" finally wake up and realize that they have put their savings into something that is neither money nor a viable currency, the rush for the exits will be epic.
In the meantime, sit back and enjoy the price action. What is unfolding is history in the making. This may very well be the biggest mania ever.
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