Bitcoin's shows signs of a bubble via record price points - report

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In an article on TechCrunch, digital currency Bitcoin was reportedly on a comeback after a series of market value setbacks. Bitcoin and other digital currencies saw investor support plummet after online marketplace Silk Road were discovered to be a haven of illegal trade of drugs and gun-for-hires.

Bitcoin's market value currently clocked in at USD264 per coin. In April, Bitcoin recorded its highest price point at that time at USD237 per coin until it dipped down to just USD69 per coin in July.

Some industry observers said Bitcoin's increasing price points were bloated. Dotcom and tech writer Joe Weisenthal wrote that currency price hikes were not directly proportional to the surging value of the Bitcoin.

"But mostly Bitcoin is a speculative vehicle. And really, you'd be insane to actually conduct a sizable amount of commerce in bitcoins. That's because the price swings so wildly, that the next day, there's a good chance that one of the parties will have gotten royally screwed... The very volatility that excited people to want to play the Bitcoin game is death when it comes to real transactions in the real world," Weisenthal added.

Tags
Bitcoin, Silk Road

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