The other day I came across this rather funny graph that I found while reading another article on bitcoin by Jesse Colombo of Forbes called “Bitcoin May Be Following This Classic Bubble Stages Chart“. In the article Colombo compares the rise and fall of bitcoin prices to that of Dr. Jean-Paul Rodrigue’s “Stages in a Bubble” in which enthusiasm leads to greed and then delusion only to be followed by a massive slide back to reality… which is still upwards but nowhere near the flamboyant “highs”. Now I’m all for bitcoin! But I do think that rampant speculation and human greed has pushed it too high too quickly. Corrections are a given. The best technical charting I’ve seen for bitcoin can be found at bitcoincharts.com where you are able to access such charting capabilities as MACD, Aroon Up/Down, Chaikin Volatility and Commodity Channel Index. Check out the link I just mentioned and it will take you to an updated graph that includes those same technical indicators. So what’s Colombo’s position on BTC?
I plan to eventually take a position in Bitcoin (in addition to precious metals and other hard assets) for my portfolio as a hedge against an eventual global economic crisis that I foresee occurring due to the popping of numerous post-2009 economic bubbles as well as the ensuing debasement of currencies that would occur as a reaction to this economic crisis. For now, I am waiting for the current froth to blow over before buying in.
As for me… I still own some bitcoin… and I still mine it and yes I’m still selling my art for it!