Messianic fervor for cryptocurrencies seems to ebb and flow with their prices. With many of them making all time highs, missionary zeal is rampant. The Zman has a more skeptical take. From the Zman at theburningplatform.com:
The magical fairy dust known as Bitcoin is back in the news as its price has soared to a record high in the last few weeks. Currently one bitcoin is worth 35,000 USD, which is close to double its value of a month ago. If last spring, when the Covid panic hit, you decided to get into Bitcoin, thinking it was a safe haven for your money, your return would now sit at 700%. Of course, if you were an early adopter when the price was a few hundred dollars, then you are now quite rich.
Of course, whenever Bitcoin is on the rise, the paladins of cryptocurrency are out evangelizing about the glorious future where currency is no longer controlled by those evil bankers rubbing their hands in their secret lair. Karl Thorburn has been making the rounds on this side of the great divide. Here is a podcast he did with Greg Johnson last week that is worth a listen. Bitcoin is popular among dissidents, because the bankers cannot get you deplatformed from it like they do with credit cards.
One problem with Bitcoin is right there in those huge gains. There are wild swings in its value as people rush in and out of it. Three years ago, Bitcoin had a similar surge then lost half its value over the next six months. A similar boom and bust happened the following year. As a means of exchange, it suffers from the same problem that all commodities suffer. That is, it tends to increase in value over time, but it also suffers from the cyclical tendency we see in these booms and busts.