I have been observing International business news like CNBC an Bloomberg had been making headlines on bitcoin hitting all time high and where analyst's view is sought predicted that bitcoin is poised to challenge $5,000, $6,000, $7,500 USD level mark by year 2017 and 2018.
https://www.cnbc.com/2017/08/17/bitcoins-market-value-tops-that-of-netflix.html
There is an extreme euphoria currently trading or investing in bitcoins or its affiliate alternate coins like etherum and ripple etc. How do we know that there is an extreme euphoria where bitcoin mother of all bitcoin known as BTC, and chart quote is BTCUSD is last traded at $4,305 USD at 26 Aug 2017, 2pm. The chart display impulsive wave which is known as parabolic movement usually is an indicator of excessive speculation.
Bitcoins fanatic believer always see bitcoin as an alternate to current fiat currency, BTC is a virtual currency which use blockchain technology where it is hard to confiscate, steal, replicate, ease of payment convenience which it brings to its user and easy storage in the USD drive wallet. There are 101 fundamental reasons to own, use, invest and trade in bitcoins. My concerns is more of price action or price level to buy bitcoins in order to own and use it as a virtual currency for ease of payements.
I am skeptics on why would we use bitcoin to pay for grocery, internet bills that amount up to only hundred of dollars where bitcoin is price at current price 4500 USD, so which price level should we be exchanging US dollar for bitcoin to pay internet bills and grocery?
My view is Bitcoin is marketed as a gauge of greed and fear, fear of confiscation ease of payment, alternate to fiat currency similar as oil, Oil is marketed as fear of supply is running out with more demand from petrol car, airlines etc. But the fact is ocean bed is filled with abundance of oil that's is never going to use up, once that fear subside price will plunge.
Bitcoins like any other assets, gold, properties, currency, bonds and equities will see up and downs with low to high violatility market environment. the higher it goes the harder it falls when the smart monies pull out its fund. A retail investor will never outsmart and outlast institutional fund managers, the retails can only ride with the trend the smart monies had created and profit from the price difference, hence a wise retail investor must know when to enter and exit when the times come.
https://news.bitcoin.com/sec-suspends-trading-bitcoin-firm-after-price-jump/
http://www.zerohedge.com/news/2017-07-08/cftc-approves-options-trading-bitcoin