You better learn how to code.
Math and technology is winning over commodities in this epic run.
Obama promised us infrastructure. I guess cheap servers used to build Bitcoin was what he meant by infrastructure. Jurassic Park has been unleashed in the financial world. The economists have been calling for a currency war. While they have been busy writing books about the war, Jurassic Park happened.
Just the fact that I was writing about it made me want to short it! Thankfully I did not. Today I won’t chase it or short it either, but it is fascinating.
The price has now doubled in two weeks. Here is a price chart – courtesy of Mt. Gox (I love the lingo).
In June 2011, the Economist covered Bitcoin. If you look at the chart, the price peaked that month and fell 90 percent over the next year.
I have not seen that same type of coverage this time around. I have seen hundreds of ‘tulip’ like stock ascents and Bitcoin looks no different, but you never know. I love this commentary from my friend Charles Amadeus:
Bitcoin, BTC or $BCOIN on StockTwits is a decentralized value transfer protocol.
It is an anarcho-capitalist wet dream with Neal Stephenson as narrator.
It is a Ponzi scheme, but so is the USD and financial capitalism.
It is used for illicit dealings, but so is the USD and financial capitalism.
It is highly speculative and risky, but so is the USD and financial capitalism.
It is NOT made out of thin air or backed by the threat of violence.
This isn’t like gold or Yen, but there is a tangible, material and real thing of value created by the Bitcoin network.
Fundamentally, BTC is a public transaction history wrapped in a hard math problem. Hard in the sense that it cannot be solved with reasonable funds in a meaningful amount of time using technology in the public domain without violating fundamental assumptions we make about physics, matter and energy.