I have been posting these Bitcoin charts to StockTwits for a couple weeks now.
As I am writing, $BCOIN has crashed more than 100 points off its highs earlier this morning though I am sure by the time you are reading this the price will have changed drastically again.
This is not so much a currency but much more a pure distilled version of what animal spirits look like. It is a rare lens into speculation as element.
Let me quickly explain. Every extended overreaction (or bubble if you want to call it that) has a story and asset underlying the lunacy that has some value. In the case of the NASDAQ bubble, the internet was truly transformative though the price action obviously got way way way ahead of reality.
During the housing bubble, there were houses and real property.
But what if one could have separated any intrinsic value in the NASDAQ stocks or the houses from the speculative activity and looked only at the speculative activity? Well, we couldnt, not even in hindsight perfectly.
But with bitcoin we dont have to because there is no underlying asset, there is no intrinsic value.
So we are left with a hollow trading vehicle with limited liquidity getting moved purely by speculation.
Its glorious and tragic and why I am so interested.