bitcoin is not a currency
Another interesting episode in the ongoing debate as to what Bitcoin might be, a currency or commodity or security or just a bizar geek hoax. A US district judge has ruled, for the purposes of a bankruptcy case in California, that bitcoins are a kind of intangible property (coindesk). Quoting Judge Montali :
But that doesn’t make [bitcoins] dollars, that’s my point. I understand how the parties acted, but that doesn’t make them dollars.
After reading Soros on the subject of undervalued stock, I was having a look at Ethereum around Christmas. Doom and gloom, Ether was 45% under it’s introduction price, hardly 200.000 dollars day trade. A lot of bashing on the forums & rumours that the developers ran out of funds. Ether being down to 85 cents, it was *the* investment opportunity of the year.
Yesterday (6 weeks later) we saw 30 million dollars daytrade and today Ether hit the $5,00 mark, 400% up since Christmas.
bittrex : ethereum price hits 5 dollars
Who knows how crypto goes ? A tentative estimate on my part puts Ether at 30 dollars per september. The europeans are buying with fiat, accounting for 10% of daytrade, and the Chinese have not opted in yet. Trade on Chinese exchanges accounts for maybe 2% of total trade.
With 30 million dollars daytrade, Ethereum is starting to approach Bitcoin in volume, Bitcoin is normally at 45 to 60 million daytrade.
Even at 4 or 5 dollars I’d still say it is a safe buy.
Don’t invest money you cannot afford to loose. Don’t take my word for it. Stay poor.
Slightly obsessive, I watched all weekend how the Bittrex exchange rate of Ethereum slowly approached 1 dollar, then it hit the 1 dollar mark, so now I can go eat my pizza, that is almost autistic, I expected it to hit 1 dollar but as long as it does not happen I cannot put my mind to rest.
Ethereum appears to be dollar-stable, it hardly responds to fluctuations in BTC price, which went from 430 to 455 after the chinese exchange dropped 7%, and then dropped back to 445 dollars. In the mean time the Ethereum price kept approaching 1 dollar which was what I was curious about, wether it’s exchange rate is BTC or dollar linked.
I cannot help but fantasize what would happen if the Chinese discovered Ethereum.