Bitcoin Is Now Over $5000 and Our Heads Are Spinning
So one bitcoin is now worth $5,000+ USD. We are beginning to run out of superlatives to describe the feeling of hitting each four-figure milestone. Given the hardships of the past couple of months, can we say Bitcoin is truly “antifragile”?
BTC hit the big five thousand on Coinbase at 4:00 EST on Thursday 12th October — despite bottoming under $3,100 less than a month ago. At press time it had risen further and was sitting just above $5,100.
It wasn’t so long ago that we gasped in amazement at BTC hitting $4,000. And Bitsonline‘s technical analyst Ramiro Burgos has been predicting a charge towards $5,000. Bitcoin activated a trigger at the $3,000 mark, he said — so who knows what kind of psychological effect $5,000 will have?
These days Burgos is predicting $6,000, even $9,000. Not so long ago that would’ve sounded crazy… but to be honest, so did $5K at one point.
BTC Brushes off China, Banksters
This isn’t actually the first time in history bitcoin has topped $5,000. BTC hit the landmark all-too-briefly in the first week of September 2017. It looked like Bitcoin had absorbed the drama over SegWit, hard forks and Bitcoin Cash, and optimism was high.
But then, as has happened at other key price points in Bitcoin history, the People’s Bank of China entered the room. First it announced a ban on ICO fundraising, then went further by shutting down local cryptocurrency exchanges. The latter move was unexpected and caused serious price anxiety.
As some analysts noted, Bitcoin has probably adapted to Chinese regulatory uncertainty over the years. The recent actions, though far more dramatic than 2013-14, didn’t impact the price as much. “Forget about China” became a catch cry.
The next wave of attacks came from the banksters — JPMorgan CEO Jamie Dimon called Bitcoin “a fraud”, and promised to fire any employee caught trading it. Bitsonline‘s Todd Byrne speculated it may be part of a plot to regulate cryptocurrency so heavily that Wall St. may dominate the industry.
Even though Dimon’s been slamming Bitcoin for years, his recent comments seemed to have the most impact. BTC has been lackluster since then, dropping to around $3,000 in mid-September.
Is Bitcoin ‘Antifragile’ or All Hype?
Apart from a few hiccups, it’s been rising steadily since then. That’s despite the threat of another contentious hard fork over SegWit2X (S2X) in November.
Nassim Nicolas Taleb described organisms and systems that weather hardships and emerge from them stronger as “antifragile” — and the word is often used to describe Bitcoin.
Or maybe it’s just all hype. Cryptocurrency value is a beast that’s feeding itself. The higher it rises, the more attention it gets. The more attention, the more new investors suffer FOMO and try to get in. The cycle repeats.
So the big question is: What are you doing with your bitcoins now? Holding on to them for dear life, in the hope John McAfee was right about $500K or $2 million? Panic-dumping your stash out of fear it’ll soon plummet? Sitting jaded and spent like Al Pacino behind a mountain of cocaine?
Bitcoin and cryptocurrencies can be exhilarating — if hodlers and traders don’t die of heart attacks first.
Where does Bitcoin go from here? Let’s hear your thoughts in the comments.
Images via NASA, Coinbase, Pixabay