Why the constant drumbeat of illegitimacy could fuel the next leg of the Bitcoin Rally.
First it was the gold bugs. Then the fringe economists and media. Now, some very important people and institutions have joined the Bitcoin fray in dismissing the digital currency as nothing more than a bubble du jour. But ironically, that is precisely why some market watchers say the digital currency could have real value.
In just the last 24 hours, former Fed Chairman Alan Greenspan said the virtual currency is worthless, and the People’s Bank of China outlawed the use of Bitcoin by financial institutions. But curiously, as the cries of illegitimacy grow louder, the value of Bitcoin is surging – rising more than 1000% in the last three months.
“The move by the PBoC to ban banks from dealing in Bitcoin could be seen as a blow to its acceptance, or it could signal China is attempting to regulate the currency,” said Brian Kelly of Brian Kelly Capital. “Regulation implies acceptance, which inRead More »from The more credible the critics, the more valuable Bitcoin will become