Dissecting the latest statistics on the Bitcoin Blockchain

Just looking at the latest information on the Bitcoin Blockchain, and the current movements are quite interesting.

(Source: Intelligent HQ: https://www.intelligenthq.com/finance/how-blockchain-technology-might-decentralise-everything-not-just-currency/)

Across the major Bitcoin exchanges, the average $USD price at the moment (9.15pm Australian Central Standard time) is US$3,960.74. Now remembering that Bitcoin first broke the US$1,000 barrier on the 2nd of January 2017, and only consistently maintained a position above this mark from the 27th of March 2017, we have seen a meteoric rise since then. In fact, in the (approximately) 5 months since this time, Bitcoin has risen by somewhere around 300% - a fantastic return if you were wise enough to invest heavily around the end of March.

So, should you invest now?

Well, this is the big question. Like most investments, when the media and the public are calling it a boom, then it's already too late to invest - basically, the horse has bolted and the gates have been shut!!!!!

But wait!

The Bitcoin Blockchain is still yet to mature in terms of the time it's been at high levels on the market. Has it found a new higher floor? To answer this, we need to look historically.

From it's release in January 2009 (at a price of zero), the price stayed relatively steady until February 2014, when it exploded to reach almost US$1,000. From there it retreated to a low of US$205 in 16 January 2015, only to start rising to reach US$1,000 again early this year, and now up US$3,960. In fact, on August 19, the price reach US$4,223.

So - is there more upside? Possibly! But, as we have seen this crypto-currency also has the capacity to lose 80% of its value over time as well.

My verdict? Until the Bitcoin Blockchain matures at higher levels, showing that it has found a solid floor, it is too volatile to invest in for the long-term at the current high levels. However, for short-term speculators, such volatility can lead to huge profits but also huge losses in a short space of time.

Are you brave (or foolish) enough at this price?