Once again, circumstances have forced Dealbreaker to talk about bitcoin. As a refresher for those wasting their time on assets backed by actual things in the world, bitcoin's price has shot up insanely of late, more than doubling over the past month:
Then on Thursday bitcoin went into full-on faceful-of-coke territory. Accordingly, CNBC published its How to Buy the Thing the Kids Are Calling ‘Bit Coin’ story, which in a rational world would signal a top. (Highlight: “If you would rather buy bitcoin in a retirement account like an IRA, you can do that too.”)
Shortly afterward Coinbase, a leading bitcoin exchange recommended by CNBC, experienced technical difficulties. Then came the fright:
This of course was more of a stumble than a crash. Prices reverted briefly to those of the day before. Then the dip got bought.
But it's worth asking why the sudden shudder. Generally there's no use trying to assign causation in the epistemological funhouse that is cryptocurrencies. But here there seemed to be a precipitating event: Dan Bilzerian.
Dan Bilzerian is a trust fund recipient and Instagram star whose fame stems from acting out the adolescent fantasies of those who haven't yet achieved his net worth and/or the age of 17. If you're an adult who's heard of him, it's probably because of he threw a porn star off a roof one time. She lived.
Late Wednesday Bilzerian decided to use his Insta feed to tout the merits of cryptocurrencies. “Just bought a shitload of bitcoin...it’s so crazy watching that shit fucking go up it’s like...betting a bunch of money on the Super Bowl.” Noting the video, a Redditor said, “If that's not a sign of a bubble idk what is lol.” MarketWatch noticed the post and ran a story on Thursday around noon titled “Did this not-safe-for-work internet sensation just signal a top in bitcoin?”
Then bitcoin dropped. As Dealbreaker survivor Joe Weisenthal noted:
But the fact is this isn't the top. That's the beauty of bitcoin. Every time the speculative fever seems to reach peak absurdity, diehards rush in to keep the ball in the air, and what was previously an absurdity becomes a bull case.
The view from r/bitcoin: Just another day for old school bitcoiners...