Moneycontrol

Budget 2023Budget 2023
Upcoming Event : LeapToUnicorn - mentoring, networking and fundraising for startups. Register now
you are here: HomeNewsBusiness

Bitcoin makes a comeback: Smells like 2017 again

This morning, Coindesk reported that Bitcoin is trading at $18,062. All of a sudden, it smells like 2017 again. 

November 19, 2020 / 12:50 PM IST

George Goodman, the author of 1968  classic , summaries the story of the Smiths who held IBM stock but never sold them, thus:

International Business Machines, the company, has been around for more than 110 years. If you discount a few ups and downs, it has delivered returns to shareholders year after year. So it’s no surprise that the Smiths were happy with their stock. Sometimes when the company underperforms, its stock goes down. Sometimes when the company performs well, its stock goes up. Analysts spend countless hours predicting the future value of such stock and billions of dollars ride on this. When you operate under such an assumption, investment decisions are relatively easier to make.

hello world logoBut lately, there’s another asset class that’s arousing the interest of investors once again. But it baffles most analysts. I’m talking about Bitcoins. Until a few months ago, it was the outcast among assets. Only hardcore cryptocurrency users and investors dared to dip their toe into the pool after the Great crypto crash of 2018. The price of Bitcoin had risen to an all-time high of $19,783 on December 17, 2017. Five days later, it fell 45 percent to $11,000. It continued its slide and fell to $5,500 on November 15, 2018.