We find an uncanny similarity in the bitcoin price track over 8+ months to a prior gold price track over 8+ years. Then the fun evaporated

The bitcoin price has been having a rollercoaster ride recently.

Mainly it has been going up in spectacular fashion. But there have been sharp corrections as well.

Bloomberg published this chart on Tuesday, graphically tracking these movements since the beginning of 2017.

But that chart looked familiar.

Here is the gold chart from 2005 to 2013, an eight year period.

Two thoughts occur: One is that the bitcoin price trajectory is quite similar to the gold one but bitcoin is gold on steroids. Bitcoin’s price rollercoaster is happening a lot faster.

And the other is, what happens next? If gold is the precursor, perhaps that is suggesting that bitcoin may now just wind off on a slow steady period of price atrophy. No big collapse, just a tailing off.

But of course, gold has other uses and values than bitcoin does. Perhaps that is what has kept gold holding on to its 2009 price levels?

What does bitcoin have? Oh yes, (like gold) a medium of exchange for the underworld.

Maybe that’s enough.

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