Bitcoin price hits $100
The value of Bitcoin surpassed $100 yesterday, on April Fools’ Day. The virtual, uncontrolled currency has gone from strength to strength in recent months but now it is starting to resemble a massive bubble.
Back in January, Bitcoin was trading at just $15 and just a month ago it was at $35. It doesn’t take a degree in economics to realise that something is very wrong and that it is only a matter of time before something truly nasty happens. At this rate, you are probably better off investing in Cypriot banks than in Bitcoins.
Multiple businesses and web services have started accepting Bitcoin as payment over the past few months, but this doesn’t justify the spike in value. In fact, nothing does.
Analyst Nick Colas told Business Insider that investors are wary of Bitcoin, which is hardly surprising given the numbers.
“The reaction from clients has been pretty uniform: it must be a bubble. Too far, too fast, too new … you get the idea. Moreover, it’s very hard to short Bitcoins, so there’s no real way to express that pessimistic point of view, which is saving a lot of people some real money, since Bitcoin has some solid momentum just now,” he said.
If Bitcoin crashes, it wouldn’t be the first time. Back in 2011 Bitcoin was trading at $30, but much of the value was wiped out after multiple hacking incidents raised questions about security. This time though, the crash could be much bigger.