by Gary North
For anyone who bought Bitcoins at the top at $1200 in December, he has suffered a 73% loss if he bought from Mt. Gox, the largest American exchange.
If he bought Bitcoins from one of the competitors, he is down by about 48%.
Bitcoins are wildly volatile, as I have warned repeatedly. This is why they are not money. They are crap-shoot investments for people who do not understand either monetary theory or the huge risks of a new, untried technology.
The Bitcoins market is a shambles. The hype is now gone. Economic reality has intruded. Once this happens to an investment that was pumped up by hype, it is hard for it to recover. “Once bitten, twice shy.” The response of potential new investors — the much needed greater fools — is this: “I remember what happened last time. I think I’ll pass.”
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