Us mining professionals have been getting sick of cryptocurrencies because they have been sucking investment dollars out of the junior mining space. We are also sick of watching others make money while junior mining stocks are, at best, lackluster.
But, wait, what is this…is the Bitcoin bubble about to pop? Bitcoin and its cryptocurrency brethren have been going exponential recently, which is typically the last and most violent move up when something is in a bubble. Go check out the nice graphic by Visual Capitalist earlier this week on Bitcoin’s rise to $10,000 (link). As per their table below, Bitcoin moved from $9,000 to $10,000 in a mere two days.
Today, Bitcoin’s rapid rise came to a screeching halt at around 9am. It hit $11,300, then fell 20% to $9,000 by 2:30pm before rebounding to $10,000. Something that can move this much this quickly does not have fundamental underpinnings. It is a bubble and it will pop. Why do I care? Cryptocurrencies are going to make junior mining investment look tame and I’m hoping dollars flow out of cryptocurrencies and back into boring old silver and gold. The gold chart looks good and sooner or later I think gold prices will pop. Bitcoin will also pop, but in a different way.
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