I’m going to call it, the exchange rate between USD and Bitcoin has started its downwards path and will not get to the heady heights it has recently been again (however, I can guarantee some collusion here with some nutty seller agreeing with a nutty buyer to exchange at USD20 or something stupid, I’m talking about long term averaged daily prices here).
I’m not sure how it logically could have gone up to the high experienced on 18 May of high of USD8.40. Actually, my understanding is that logic has a limited impact on markets like this because people tend to get swept up in the whole hype of it all. Perhaps it was the greater fool principle showing here, one person ripping the other off until the market takes a breath and asks its self, what the hell can I buy with bitcoin and why should it be worth so much now when late last year it was worth USD0.095?
Oh well, its been interesting seeing a bubble play out in front of my eyes. But perhaps I’m just grumpy I didn’t buy when I first heard about it when it was USD1, could have made a bit of $$$ but who was to know.