Email of the day on bitcoin prices
Comment of the Day

September 08 2016

Commentary by Eoin Treacy

Email of the day on bitcoin prices

Regarding Bitcoin, after a summer lull it looks like it is coming into form once again - would welcome another update on the charts/ medium term view which hopefully is of interest to other subscribers. I must say it does have elements that remind me of the 90's tech bubble (volatile, illiquid, devoted followers etc) and I have been following it closely. Many thanks

Eoin Treacy's view

Thank you for this reminder that Bitcoin is a market where fully committed advocates contrast sharply with those who doubt it will ever become a viable medium of exchange. The blockchain foundation on which the market for bitcoin rests has significant potential in recording transactions and reducing the cost and inefficiency of banking, accounting and record keeping over the next few years before it is eventually superseded by quantum computing. 

As a virtual asset with restricted supply, especially following the halving of the reward for solving blockchain equations in July, bitcoin is trading similarly to a high beta gold investment. It has been consolidating in the region of the trend mean since the spike low in early August and a sustained move below $550 would be required to question potential for additional upside. 

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