Bitcoin volatility

I am ambivalent about the new digital virtual currency bitcoin. I have discovered it quite early and bought some when each of them was worth $0.03. I jumped ship when they were $1 each, and cashed in a nice holiday trip. When bitcoins reached $1000 each, I pondered whether I should be angry about the opportunity (and fortune) missed, but decided not to: life is much nicer when one does not worry about the „what could have been, if…“s.

While it is a cool currency, its value is essentially at the merci of a few players (still), lacking the backing of a state that can (up to a degree) ensure that the money won’t become totally worthless. How volatile bitcoins value is, and the impact that a few key actors have on its value is astonishing: When the main FX exchange, MtGox, had a crisis, bitcoins value dropped from 900 to 700 within a short time.

src: http://www.coindesk.com/price/
src: http://www.coindesk.com/price/

It is exciting to watch these developments, such as the first bitcoin telling machine in Germany (in German), happening.