Bitcoin crash?

Bitcoin (Bitcoin on wikipedia) has had a lot of exposure in the media recently due it’s apparent rise in value. Also with apparent troubles in the world economy it is of interest to talk about Bitcoin as a alternative to centrally managed currencies. The recent price rises seems to have triggered some speculation which pushed the price to rise exponentially, and eventually fall.

Bitcoin Price

Charts from http://bitcoincharts.com/

News media has had a lot of stories talking up the price rise and the fall.

This rapid adjustment in price against the dollar has been described as a crash.

If we take a look on a logarithmic chart of the bitcoin price against dollars, we can see similar movements have occurred before. I think this would count as a crash for a centrally managed currency because it would call into question the managing authorities ability to provide price stability.

Bitcoin price history

Advertisements