Bitcoin: Headed to the Stars?

BALTIMORE - Bitcoin blew by another milestone.

This morning, the world's first cryptocurrency hit a new record of $9,680.

It started off the year trading at just $997.

"I can't believe what happened," said a friend.

"I bought $1,000 worth in 2012. Bitcoin was trading at about $8 at the time. Then one of the big cryptocurrency exchanges, Mt. Gox, was hacked and almost $500 million worth of bitcoin was stolen. I got out.

"If I had just held onto my stake, it would have been worth more than $1.2 million today."

Lighter Than Air
You hear stories like that all the time now. They are bull market stories. The hero regrets having sold too early.

Later on come the bear market stories when he regrets having sold too late.

But let's enjoy the bull stories now... while we can.

The typical story has its hero... and its villain. The hero bought bitcoin when everyone told him not to. Now he's regarded as a genius. Even his father-in-law is asking his opinion on everything from politics to cocktail recipes.

Last week, the geniuses multiplied...

From what we can tell, bitcoin is headed to the moon. Or to Hell.

Weightless... frictionless... why not?

If it hit $9,000... why not $90,000... or even $900,000?

Bitcoin is a perfect "investment" for the fake-money era. Lighter than air. Not here; not there. Neither animal, vegetable, nor mineral.

Immaterial. Implausible. Imponderable. And immeasurable. There is nothing to hold it back.

Bill Bonner is the President & Founder of Agora Inc, an international publisher of financial and special interest books and newsletters.