Rude Trends When to Buy... When to Sell
"Why do you keep reporting on Bitcoin?" asks a curious reader. "Do you really think this is the currency of the future?"
I have no idea if Bitcoin will become a "legitimate" currency anytime soon-- or ever, for that matter. I'm not even sure if that's the goal of whoever created it. Heck, no one really even knows who got the ball rolling for Bitcoin in the first place…
But that's not the point.
Bitcoin is a radical idea. It's attracting a lot of attention from some pretty smart people. And its price action has been wild and crazy for months. Just this year, the price of a Bitcoin has vaulted from less than $20 to more than $260, back down to $70, then back up above $200 again (one Bitcoin will run you about $228 this morning). If that doesn't get your attention, I don't know what to tell you.
And for the record, I haven't endorsed or recommended Bitcoin once since I started writing about it. It's just too illiquid and volatile for my taste. I'll stick to equities…
That doesn't mean Bitcoin's not worth watching. You shouldn't cash in your 401(k) for Bitcoins. But you shouldn't ignore it, either…
[Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner]
Poster Comment:
I was thinking about getting into BitCoin, but this blurb tells me it is too volatile. ;)