2016…the year of bitcoin?

This is a chart of Bitcoin (BBG symbol XBT).  The chart immediately below follows a very similar pattern.  It’s a chart of gold.  The 1979/80 spike higher unraveled over the next 6 years or so, just as the spike high in XBT from Nov/Dec in 2013 has taken about 6 quarters to unwind.

So, in the modern rapid-fire technological world, the “tech” currency compresses movement to about 1/4 of the timeframe.  It’s like dog years.  And probably accelerates (or compresses as the case may be) in accordance with Moore’s law, or Einstein’s theory of relativity or something like that…

Now, in order to determine where bitcoin MIGHT go, all we need to see is where gold went.  The bottom chart shows us: it took about 10 years, 1986 to 2006, to revisit the peak, and then another 6 years to go another 2.5 times higher.  So maybe it will take another 10 quarters or two and a half years for bitcoin to jump back up to 1100, or probably less as the time space continuum implodes.

Obviously I am just joking about making price projections.  However, I absolutely believe that bitcoin will maintain underlying support as some countries attempt to stem currency outflows and others try to outlaw cash altogether.

bitcoin

 

 

 

 

long term gold

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gold 1978 to 2015

 

 

 

 

 

 

 

 

Posted on December 31, 2015 at 10:52 am by alexmanzara · Permalink
In: Eurodollar Options

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