Bitcoin hits the brakes again
Bitcoin (BTCUSD) also received something of a reality check yesterday, and despite the zeal of the Bitcoin evangelists, this does not look like a product in as much demand as some would have you believe. The cryptocurrency continues to look soft today amid rumours of a large short position being constructed in the Chicago Futures markets. This is another market that displays the nervousness we are seeing in more mainstream investment options (FX, Stocks etc), but the effect is likely to be amplified in a product that has no intrinsic value. It remains a vehicle for speculators, not investors, and while there is no dispute that blockchain technology will revolutionise commerce, there are no guarantees that Bitcoin will be the principal beneficiary. Being a pioneer doesn’t ensure commercial primacy.