Courtesy of Mish.
I have a recommendation to make on bitcoin but it's not to buy or sell or even to hold bitcoins.
Before I get to my recommendation, I have to admit that I am quite surprised that bitcoins surged from less than a cent to over $1000 (now around $520).
Treasury, Wall Street Embrace of Bitcoin
Early on, I wondered if bitcoin would even survive. But it's pretty clear now that bitcoin will survive.
I arrived at that conclusion when Wall Street embraced bitcoins (see High Frequency Bitcoin Trading Coming Your Way). In response, I stated "bitcoin is here to stay".
On March 18, I reported Treasury Department Places "Real Value" on Digital Currencies, Sees No Widespread Criminal Bitcoin Use; Virtual Currency Rules Coming Later This Year.
To me, that Treasury discussion was further evidence bitcoin is here to stay. I strongly suspect the Treasury wants to study digital currencies, possibly in advance of making the US dollar digital, and in the process making every cent traceable to someone at all times. Unfortunately, I believe such controls are coming.
Money is Made by Being Early
Bitcoin is front-page news. But money is not made when things hit the front page of the Wall Street Journal. Money is to be made in items on the 20th page of the Wall Street Journal, if not before that.
In 2009, $1,000 invested in bitcoins would be worth a staggering $50,000,000 today. That is the effect of investing in something that goes from one cent to $500. I missed it, so did nearly everyone else I know.
Recommendation
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