BITCOIN DIARY: Bitcoin hits R100,000, just enough to buy Gigaba's shiny watch
'What this shows is that as the establishment starts to take a bite - even a small bite - of the crypto apple, the effect on the price is dramatic'
On Wednesday morning, history was made when Bitcoin smashed through the R100 000 barrier and then kept climbing (see ice3x graph below). The Gigaba effect (that budget speech, remember?) lingered on and there were developments in the US that added to the hype. File under "what could possibly go wrong" and then buy yourself some Bitcoin futures. That's right, the Chicago Mercantile Exchange (assets $69bn) will soon take the crypto coin mainstream by placing it among its derivative currency options. If you want a peek at the CME's thinking, read The Evolving Economics of Bitcoin, Gold and Fiat Currencies on the CME web site. Here's a slice of their analysis: However volatile they may be, the reason why gold and bitcoin are perceived as stores of value is simple: their money supply doesn’t grow quickly and, in the case of bitcoin not at all, some day. Both gold and bitcoin money supply growth is determined by mining output. Over the past half-century, new gold mining supply has added ...
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