Bitcoin's Volatility Problem: Why Today's Selloff Won't Be the Last
The U.S. Federal Reserve has no plans to regulate Bitcoin. But former Federal Reserve Chairman Alan Greenspan chimed in, calling Bitcoin a bubble in an interview yesterday on Bloomberg TV.
By now, wild moves in the price of Bitcoin are to be expected. And unless this emerging asset class becomes a more stable reservoir or wealth, Bitcoin will continue to be viewed with suspicion among everyone but the most daring of speculators.
China’s new regulations come shortly after Bitcoin reached what was hailed as an important milestone: parity, of sorts, with gold. Its price in U.S. dollars on Tokyo-based Mt. Gox, the largest Bitcoin exchange, briefly touched the $1,242 price of 1 troy ounce of gold around 12:30 a.m. on Friday. Bitcoin quickly fell away, but the two assets continued to dance closely to each other until today.