The major boom in Bitcoin has been nothing short of dramatic. What is fascinating is the quick run it has had in 2013 where it seems that all things are going up in value; real estate, stocks, and digital currency. One of the big reasons for the recent run has been the mainstream expansion of Bitcoin. Whether for novelty or for protecting assets, Bitcoin does not seem to be going anywhere. Like the birth of anything new, price fluctuations will always occur. What is difficult with Bitcoin is how do you price the birth of a new currency? This isn’t like pricing a company with audited financial statements and verifiable inventories. This is a new currency. A means of exchange to purchase products and to hold value. The price of one Bitcoin touched $1,200 at one point and had a quick fall. Currently, it is trading under $1,000 but the volatility has been dramatic recently. The scarcity of one Bitcoin is also one of the reasons for the meteoric rise of the currency.
The rise of Bitcoin
The mega rise has all occurred pretty much in the last couple of months.
Are we seeing a new peak in the stock market? It sure seems that way. There has been little evidence to justify such a dramatic rise in stocks during 2013. Speculation is running rampant and retail trading is very low in relation to large bank trading. It appears that a sizable portion of the buying activity is coming from large investors trying to avoid anything having to do with fixed income. The Fed is making it very difficult to save in any moderate to safe return investments so the investment community dives head first into the stock market. Stocks are up a whopping 26 percent in the year. We should get used to these wild swings in the market even though volatility looks to be very low. If you have any doubts about where things stand today just take a look at what the stock market has done year-to-date:
Americans are definitely interested in the government shutdown. Beyond the basics of interfering with the economy and inching us closer to a default in mid-October, the government shutdown is front and center in the minds of Americans. This wasn’t the case the last time we encountered a potential government shutdown. Although it appeared that we would head down the same road we did not. This time however, the government has shutdown and is actually causing real repercussions in the economy. Visit many government websites and you will be greeted by some message indicating the impact of the shutdown. Ironically Congress is still being paid during this time which is comical. This is like shutting down a company and expecting the executives to be paid during that time. It is hard to say how much longer this will go on but already, the impact will be felt for weeks and months to come as the public becomes more aware as to how difficult it is to arrive at any sort of consensus in Congress, even if it means a default.
Take a look at the surge in interest:
The American public is paying very close attention.
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