Bitcoin is Volatile


Friday, Dec 7,  2013 - Today, for the third day in a row, the bitcoin price went down. This can feel unnatural for some because they are accustomed to the price always going up. Although the price of each bitcoin, and thus the dollar value of the entire network went down today, that does not mean that bitcoin is over.

There was some news that likely influenced the price negatively: Baidu is no longer able to accept bitcoin per Chinese govt regulations, and Chinese banks are not allowed to hold bitcoin. Does that mean everyone around the world will stop working on the bitcoin products and services that they are building? No.

Bitcoin is a payment technology. It has usefulness like Western Union has usefulness, and it's far cheaper and increasingly easier to use. We don't know what the price will be tomorrow or next week, but we do know that it's not going away anytime soon. It's not going to zero. If one draws some trend lines on a chart of bitcoin's price, one might even deduce that the long-term trend is still upward.


Yours in peace,


Derrick J Freeman