Can Bitcoin defy logic and go to Infinity and Beyond? Part I

The cryptocurrency bitcoin has done a passable imitation of Buzz Lightyear from Toy Story, by going “to infinity and beyond” with its price increasing tenfold in the last year.

On November 29 alone Bitcoin's price opened at $9891.9 and rose as high as $11,427.2 before it closed at $9749.4, down $153 on the day. It had been as low as 9001.1 and as high as 11,427.2 on the day, giving it an inter-day range of $2426.1.

from investing.com

That has made early adopters of this new “digital cash,” like RT’s Max Keiser, very happy: anyone who bought bitcoin in 2013 (when it cost $13) has increased their bitcoin wealth a thousand-fold in just 5 years. Max and many other bitcoin devotees will tell you that they’ve bought in on the ground floor of the new money, which will someday soon be worth $100,000 apiece, and which will sweep aside the old and corrupt fiat money systems that preceded it.

This was certainly the intention of bitcoin’s anonymous designer Satoshi Nakamoto, who was incensed by the financial crisis of 2008 and the failure of governments to do anything to rein in, let alone punish, the bankers who caused the crisis. Rather than being thrown in jail—as they were in Iceland—compliant Western governments threw massive amounts of fiat-based cash at the ‘banksters’ to replace the credit-based money they had created and destroyed in the speculative orgy of the SubPrime Bubble. He made his disgust and his intentions clear in the very first bitcoin he produced, which included a news headline about the UK Chancellor preparing to bail the banks out, yet again, in January 2009.

To be continued.......