# Bitcoin Going Nuts Again

The left hoped bitcoin would be another fad or bubble, but you can’t keep a good thing down for long, and Bitcoin is surging again:

Bitcoin is not going away. It’s here to stay, having long graduated from the ‘fad’ or ‘novelty’ stage. Transaction volume is at multi-year highs:

As a disclosure I own Bitcoin, having made a purchase in 2013 when it was around $170. Liberal sore losers like Krugman and others said is was bubble, and is has since gained$120.

From money morning: Bitcoin Price Prediction: Why It’s Only Now Finding the True Value

First, critics typically liken the Bitcoin bubble to the infamous Dutch Tulip Bulb Mania of 1634-1637.

In that case, imported tulip bulbs went from being a somewhat pricey luxury to a wildly speculative investment. Prices soared some 1,500% within a few months. When some started to cash out, the whole thing crashed. In less than a month, prices for the once-prized bulbs fell 99%.

Bitcoin, however, is not that kind of bubble. The tulip bulbs had little practical value; they were just pretty flowers.

That’s right, Bitcoin has utility, unlike a tulip. It’s even better than gold, which is a much more saturated market.

The easiest way to make money is to do the opposite of what the left says: when the left says stocks are too high, better buy stocks, which is what I did during the dip in August.

There are about 15 million Bitcoins in existence, giving it a market cap of about $3 billion. In terms of transaction volume relative to established payment options like Paypal and Visa, there is plenty of room for growth: I would not be surprised if Bitcoin goes to$1,000 within five to ten years. If you have a bunch of cash lying around, investing maybe 5% of it in Bitcoin may be a good move in the fortuitous event Bitcoin becomes a major competitor to Mastercard and Visa. Its much safer then most stocks, as it’s not uncommon to see individual stocks fall 50% in a month with little explanation to never recover. There is an actual underlying infrastructure/economy here, with thousands of individuals and businesses that use Bitcoin. It’s not like some crappy start-up or stock that fails and is soon forgotten. Bitcoin is now a major part of life, having carved out it own unique place in the world of commerce. Because the number of new Bitcoin grows very slowly, if transaction volume increases but Bitcoin monetary velocity falls or stays flat, prices will have to rise. Due to the scarcity of bitcoins, combined with the utility/value of bitcoin, people have an incentive to hold them.