Bitcoin’s Strength May Be Exercise in Folly

Should we be comforted or unnerved by the fact that bitcoin was the top performing currency last year?

Probably a bit more of the latter than the former.

The Money Project, which exists as a collaboration between Visual Capitalist and Texas Precious Metals, noted that the cryptocurrency notched a 35 percent gain over the course of the year (ending at a value of $429). Compare that the dollar’s 8 percent rise over the same period, and the greenback looks, well, dodgy by comparison, even as measured by a basket of other currencies.

True, the fact is that the Federal Reserve gave some real backing to the dollar’s rise – first in the form of speculation about rate hikes, then ruminations via Fed minutes about rate hikes and then rate hikes – means that investors, retail and professional alike, see value in the dollar.

Conversely, gold was off 10 percent, and some currencies saw massive

Read more ... source: TheBitcoinNews

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