Bitcoin, Ethereum, and the cryptocurrency bubble

Virtual currencies are on a rollercoaster ride.

“When the facts change, I change my mind. What do you do?”

There’s some question as to whether noted economist John Maynard Keynes actually uttered these words, but that hardly matters. I find it to be an increasingly useful credo, regardless of initial source.

Last year I observed that Bitcoin’s price volatility had settled into a range not much wider than that of several sovereign currencies.

I said this not because I’m a big proponent of Bitcoin as the currency of the future. I’m not, although I always take pains to emphasize the distinction between cryptocurrency and its underlying blockchain technology, the latter of which holds immense potential.

Thankfully, this distinction is becoming more widely appreciated. My point was that as it matured, one of Bitcoin’s Achilles’ heels as a sound store of value seemed to be receding.


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