There will be advantages to bitcoin when it does become a stable currency, mainly having to do with the value and volume of money.
But consider: The broad stock market itself hasn’t had a substantial correction in years. We are likely in the longest uncorrected bull market in modern history. When it does correct, it will probably be with a massive thud—and bitcoin will not be spared.
The out-of-this-world projections see bitcoin heading toward $500,000. That’s based on the idea that as it ceases to produce coins, the demand will be stimulated. Elsewhere, in central bank communities, money is in endless supply and regularly depreciated. This is possibly another reason bitcoin, not currently subject to such constraints, has gone up so much this year.
Finally, there is the idea that bitcoin is simply making rational moves: seeing bubble-like upticks but then actually realizing their value over time.
The bottom line is that no one knows quite where the currency is heading next or how fast it is going to get there. But of late, it’s often gasp-inducing to find out.
David Murry is bringing several initial coin offerings to market and is the author of a recently published book, Blockchain Disruption: How a Decentralized and Distributed World Expands Freedom.