Nay-sayers and I-told-you-so’s said the same thing about gold when it had setbacks over the last 12 years. During that time (2001-2013), gold has been the best performing asset class in the world.
Source: The Real Asset Report
Bloomberg declared it [Bitcoins] ‘Bubble-tastic’, the FT described Bitcoins as ‘less useful than Air
Miles’ whilst the Wall Street Journal described it as ‘a mysterious money which has
become the darling of anti-government libertarians and computer wizards prospecting in
the virtual mines of cyberspace. In Europe…it has found its niche as the coinage of
anarchic youth. . .’
The rhetoric used to describe Bitcoin, particularly by journalists, is word-for-word the same
as that used for gold and silver. ‘Gold bugs’ are frequently described as ‘anarchic’ or ‘antigovernment’.
Very few mainstream commentators have recognised what this rush into Bitcoin means,
whether it is something which proves to be untrustworthy in the long-run or not, at
present it is clearly something many investors feel they’d rather put their money into than
another bank account or asset-class. They feel they can trust it more than their banks and central banks. The other participants are just trying it out, and if they don’t get burnt the Bitcoin market cap will continue to grow as it matures as an alternative currency.