Bitcoin is down over 40% today.

Source: Techcrunch.com
Source: Techcrunch.com

I don’t like anything which goes parabolic in value as these sorts of things tend to snap back just as quickly.

Bitcoin today was in free fall after an amazing rise. But I think this is to be expected, and I don’t think it means the end of Bitcoin.

The market is still relatively thin, meaning there aren’t a ton of traders at any particular time. More and more have come in, but relative to the stock market for instance, where some firms act as market makers and there are also millions of exchanges going on, the Bitcoin market is tiny.

In micro markets there is often volatility. There are swift moves up and swift moves down. Add to this the fact that one important Bitcoin exchange was under a hack attack today (reportedly the reason for the crash) and one can see that this game is not for the faint of gut.

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