171028 Dear Diary, Bitcoin Has Been Remarkably…

Screen Shot 2017-10-28 at 10.05.49 AMDear Diary,
Bitcoin has been remarkably quiet the last couple of days, settling down to $5750.  It’s easy to forget that Bitcoin was as low as $3000 on September 15th just 43 days ago.  It was also at an all-time high of $6137 one week ago today.  That’s been a wild ride nobody quite expected to happen, so suddenly, so fast.  Movement seems to come in waves.  With rumors from China, pronouncements from Russia and a few bitcoin blockchain forks, past, present, and future, its no wonder there have been sweeping changes in attitudes.  A few days or weeks even, of quietude might not be such a bad thing.  It’s no wonder, new owners of bitcoin and owners who suddenly find themselves onto an investment so volatile as bitcoin are beginning to take stock of themselves and their property.  Those who have been watching bitcoin but have chosen to not enter the fray as of yet, also take pause.

Either bitcoin is going higher or bitcoin is fizzling out and diminishing to zero.  I don’t see the latter happening.  There’s just too many good reasons for it to continue and grow.  The only question is whether it will trace a hockey stick chart, launching into the stratosphere sometime soon or going up in a relatively straight line.  Since it hasn’t done anything in the straight line, I’m guessing the hockey stick approach. Over the past year bitcoin has risen steadily but sometimes explosively four or five weeks in a row, then retraces it’s steps for a week or two, and then begins moving higher again.    IF the pattern continues, we should see bitcoin in a holding pattern for the next couple of weeks.

171015 Russia Introduces the CryptoRuble

Vladimir Putin himself made the announcement that Russia would issue its own cryptocurrency — the CryptoRuble.  What’s more, he said there would be no mining of CryptoRubles, that CryptoRubles could be exchanged for rubles at any time and there would be a 13% tax if the owner could not explain where they came from.  An odd set of rules to be sure but there is no secret about what the intention is: strict government control.

Is this good for Bitcoin or bad? Obviously, there will not be a strong Bitcoin market in Russia.  There will be none at all.  But they will have their own brand of cryptocurrency.  It’s difficult to see how this turn of events could help Bitcoin.  In effect, this just proves the potential power Jamie Dimon’s latest statement regarding Bitcoin was speaking of, that governments will crush Bitcoin. People fight to obtain and hold power and wealth.  Bitcoin, for those who understand the power cryptocurrencies offers, threatens to redistribute wealth in some fundamental ways.  Governments have always reserved the right to oversee the currency of the land.  Vladimir Putin and Jamie Dimon know this.  Putin has taken the direct approach.  Dimon has to take a more nuanced approach to conserving power for himself and for his.