The Bitcoin indicator

The value of the Bitcoin is an important indicator in our current society. It can be seen as an aggregated performance indicator for the new money: value, trust and emotion. Also other components are embedded in this indicator: greed and fear, just to name a few.

If you have not heard about cryptocurrencies, please take a few days off and investigate this further (this website could help you a little bit).

Bitcoin is not only a cryptocurrency. If bitcoin is just a bubble or in a bubble (what the disbelievers say), it just tells us all major asset classes like bonds, stocks, real estate are saturated or they are also in a bubble. Bubbles have a function and are like Champaign or Prosecco: You can have a party but if you drink to much you will lose reality and end up with a headache. You need not limit drinking, but do not drink until the point of confusion 🙂

Bitcoin has an interesting relation with security (blockchain and tokens), financial market (manipulation), fair value and the existing main currencies in the world like the US Dollar, British Pound, Euro, Yen and Renminbi. Bitcoin is built upon the blockchain concept.