Bitcoin Recovers Some Losses After Its Worst Week Since 2013

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Bitcoin rose 15 percent on Tuesday, recouping about half of the losses it sustained last week, its worst since 2013, as investors who had missed out on earlier rallies bought the world’s biggest and best-known digital currency.

Bitcoin fell nearly 30 percent at one stage on Friday to $11,159.93. At 3:09 p.m. on Tuesday, bitcoin was up 15 percent at $16,030 in light trading on the Luxembourg-based Bitstamp exchange.

While bitcoin investors and analysts believe last week’s decline in its value was a natural correction after a heady run-up in prices, there have been further warnings from market regulators and central banks. Read more at REUTERS.

{Matzav.com}

13 COMMENTS

  1. The concept of Bitcoin, a non governmental and transparent general ledger currency, strikes fear at the heart of big government worldwide. It takes away the monopoly of declaring a medium of exchange, and consequently takes away the power of printing more money at government’s whim.

      • You might pay in seashells or Coca-Cola caps, as long as the chairlift operator is willing to accept it. Obviously, at present, the US dollar is way more popular than the bitcoin, but that may suddenly change once a critical mass of users is accumulated. The only way to stop the non governmental currencies from taking over is by making such transactions illegal – a strategy that might be too little too late at this point, as the increasing governmental control might actually be the reason for the increasing demand for under the radar medium of exchange – think Sveden bigbrothering all transactions by outlawing cash or Cyprus bank accounts appropriation.

  2. People should stay away from this. There is no assets behind this fiction. There is no sensible way to place a value on it. All based on hype and the 1 more idiot rule.

    • Are there assets behind a dollar, can you go to a bank and exchange a paper note for a guaranteed amount of precious metals? Not since 1971. Its only value is a widespread belief that a dollar will be widely acceptable by sellers of goods and services. Obviously a dollar is issued by the powerful US government and is on a much grander scale, but there is no intrinsic difference between a contemporary dollar and a bitcoin.

      • Aha. And planes didn’t fly into the Twin Towers either. It was all martians. The government will suddenly proclaim: dollar bills are officially worthless. Mr. Buffet, you are now a pauper.

  3. Although Governments may not guarantee a certain measure of gold for a unit of legal tender but the governments do indeed retain huge treasuries of gold and platinum to support the value of their bank note. They also have the ability to pay metal for notes if they so choose. Where as bitcoin is 100% artificial. Also, what is stopping the anonymous developer of bitcoin from creating more bitcoins for personal use and become a billionaire out of pure nothing! There is no regulator to authenticate the sudden revelation of new bitcoins. I am pretty sure the developer is very happy he convinced enough people to fall for this meshugas. A government regulated cryptocurrency does make sense and should they become familiar to the public, bitcoins should go back to the nothing they started from.

    • You seem like a smart person, but you’re missing some information.
      1) The U.S. government only has enough gold to account for a tiny fraction of the value of outstanding dollars. There’s no way they could exchange metal (gold or silver) for cash in any meaningful quantity.
      2) Blockchain technology and bitcoin mining prevent anyone, including bitcoin’s inventor, from simply pumping out additional bitcoins. Authentication is pretty much bulletproof based on the public ledger bitcoin uses – if anything it’s too secure, since if you lose your key your money is gone forever.

  4. Is Bitcoin an investment or a currency? A Fed chair was asked the same question about gold. Couldn’t answer.
    Stocks are valued according to growth, profits, assets…. These are investments that models can be computed as to value. Not so with Bitcoin. Pure supply/demand

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