It was quite a week in money. Gold popped above $1430. The spectacular pump and dump of Bitcoin on Wednesday was something to behold. No sooner had I published a post about it then the market seized up while I was taking my normal Wednesday evening sabbatical from the grind of politics and markets. Coinbase went down. The price plummeted 25% and my blood pressure didn’t even move. I’ve been a gold and crypto guy so long ‘heart-stopping’ volatility is for other people. That said, Bitcoin’s volatility is real and that’s because it is an asset in the process of becoming fully capitalized. It’s an asset that goes through the most extreme emotional roller coasters because it is also trading in immature and unregulated markets. That volatility is used by some in the hard money/Austrian economics community to argue against Bitcoin and/or cryptocurrencies as potential money. But that is simply specious argumentation.
Source: Bitcoin’s sharp rise and its fight within the hard money camp