Another week, another new record price for Bitcoin, which is now $2480 on Coinbase. At this stage, long-time hodlers stare at each other bewildered, speculating on where it goes from here.
Conference, Agreement Boost Price
There’s probably a “conference boost” from this week’s Consensus conference in New York City. Large events always provide a price and interest bump, and if the price is already heading upward, it adds to the enthusiasm.
Consensus this year was a success too in many ways. As well as several new product and service launches, there was the Bitcoin Scaling Agreement. This saw 56 influential companies and organizations representing a majority of Bitcoin’s technical and economic infrastructure agree to finally “solve” Bitcoin’s scaling problem — or at least take a first step towards it.
It’s Still About Japan
However, while the conference and agreement were great, let’s not forget Japan. It’s important to note that the price on Quoine, one of Japan’s busiest exchanges, is ¥302,400 at press time. That’s about $2,700 USD — hundreds above the Coinbase price. For those lucky enough to have bank accounts in both countries, there’s an arbitrage opportunity.
To many in Japan, “America” is an island in the Pacific where people wear floral shirts. And they’re not particularly interested in things like SegWit or block sizes unless you can eat them. Yet money continues to pour into bitcoin and other blockchain tokens from the Land of the Rising Sun.
Japan still has a lot of money to spend on speculative investments and blockchain is the latest craze. Altcoins like ETH, ETC, Doge and Ripple XRP are waxing and waning, but all are way up on where they were at the start of the year. At this stage, technical capabilities or project feasibility are irrelevant, if you can hedge on some trades and make a killing.
It’s all too much for some people, with big investor Raoul Pal last week exiting bitcoin and warning everyone of an over-inflated bubble.
So, where does it go from here? One person will tell you this is it, it’s going to the moon. The next guy says it’s an insane bubble that could burst at any second. Sensible people know better than to say with any certainty. For long-term investors, dollar-cost averaging is still the most effective strategy.
Are you still hodling or are you out? Bitcoin or alts? Let’s hear your thoughts.
Images via Pixabay