The bitcoin exchange rate surged to above $490 on November 4 – its high point of the last year. This spike is supposedly linked to the rising popularity of “financial social network” MMM created by entrepreneur Sergei Mavrodi in China.
RT sat down with Tucker to discuss this recent surge of interest in the currency.
RT: What do you think about the volatility of bitcoin market?
Jeffrey Tucker: The bitcoin space is still extremely volatile because there aren’t many people involved in it. A handful of players can make a huge difference in the price up and down. This is what you see at the beginning of any new technology – it is not surprising at all. Investors need to be very wary.
The tragedy of all of this is that people get interested in bitcoin when it is going up and they start buying, and then they ride it all the way down. And then they lose interest when it is low when they should be buying. So, they get robbed in either direction – this is typical of any new technology, actually. There are something like several thousand scams in the bitcoin space and they have been there for about