Mainstream already has a traceable electronic payment system with consumer protection. It is called a credit card. Consumer protection has a large cost. Many consumers also want a more private digital payment system with lower costs that works more like cash. Bitcoin has already proven to be a success for those purposes.
In a recent Cryptocoins News article, Jonathan Saewitz says that Bitcoin Price Defies Expectations.
A more useful article might simply state that Bitcoin has gone up about 10,000% per year over the past 5 years.
I agree with the peanut gallery. Saewitz’s Cryptocoins article is not that helpful. It would be more helpful to point out that Bitcoin has had a simple pattern and nearly reliable pattern to note. Over the past 5 years, Bitcoin has had an approximately 3000% run-up about every 6-months. Each run-up been immediately followed by an approximately 50% correction.
We must also account for a long-term stabilization of Bitcoin, which means that the huge return on investment will be slightly less huge of a return per Bitcoin. The return will still be huge, as will the corresponding risk.
In a future post on the Bitcoin Blogs, we will see two secret words that will tell us when to buy and when to sell Bitcoin.
Corey Chambers, The Bitcoin Blogs