There are three factual statements to be made about Bitcoin:
- It has created Millionaires
- It has captured the minds of millions who would like to become millionaires
- It will bust again
The last fact is that it is incredibly entertaining to watch. It is a sideshow that represents market psychology in a small test tube. The largest daily volume was about $67M which is a microscopic market in the investment world.
There is another market (and many others in history) that showed a similar trajectory with an ugly aftermath. The most significant representation is gold in the late 70’s through the mid 80’s:
The more recent representation was silver and its quick march to $50:
My guess is that the size of the bitcoin market has allowed it to skyrocket at a faster pace, but it probably implies that it can go even further than the last Booms and Busts.
Start watching it like the followers at reddit. They find the experience similar to the following: