Bitcoin flew to new highs in these days, as Wall Street ran to catch up with the thrill of the digital currency.
There has been a bad thrill and good thrill for Bitcoin on Wall Street. The bad thrill was back in early October when big banks had a lot of bad things to say about the people’s currency. Like the statement that Bitcoin was a deception and a fizz fated to burst.
The good thrill started last week when a number of shrubbery funds proclaimed that they were investing in the digital currency. It continues this week with the announcement by the CME that it will begin trading Bitcoin futures.
|Coin/Investment Trust||Change 24H*|
|Bitcoin Investment Trust Shares (GBTC)||2.39|
These signs of progress mean that Wall Street is starting to identify Bitcoin as an investment, and is creating the vehicles and mechanisms for wider market membership in it.
In marketing terms, a wider market participation means that Bitcoin will move from the “modernizer” and “early adopter” period in the Rogers Curve, to the “early majority.” That’s when the request for a product reaches a flow, and the product becomes an “epidemic.”
In finance terms, a wider market participation means higher Bitcoin prices, especially since Bitcoin is the limited source.
But the marketing and finance of the Bitcoin market are not independent of each other. The faster Bitcoin gets approved by the early majority, the higher Bitcoin prices rise.
And the higher Bitcoin prices go, the higher the build-up for the digital currency, drawing larger numbers of the early majority into the Bitcoin party.
The problems are there any way in the offing, as market members will eventually become separated from reality, forgetting all about the fundamentals of the digital currency. They will buy Bitcoins for one purpose only: the anticipation of selling them to someone else at a higher price.