The craziness of crypto-crowds

What would dampen a buyer’s enthusiasm for Bitcoin, the cryptocurrency whose uncharted, speculative price bubble has eclipsed history’s tulip manias and gold rushes?

Three things come to mind: a security breach or theft, a major retailer warning against its patchy record as a method of payment, and a cooling of Wall Street’s already frosty view of the coin.

So far this week, all three have happened. Yet Bitcoin simply doesn’t care. Its price has now crossed the $15,000 threshold, double where it was trading only a month ago. What does this tell us?

Firstly, that the reality distortion field surrounding Bitcoin — a craze that reflects a broad desire to get rich, beat the establishment and take back control of the financial system — is expanding.

Hacks and thefts, such as the $31 million recently reported stolen by Tether, have hurt the currency’s price in the past, but no longer. Markets barely blinked at Wednesday’s news that NiceHash, a cloud-based crypto mining firm, had been hacked for, according to CoinDesk, more than $60 million.

Secondly, the surge in the price of the crypto-currency has nothing to do with its real-world adoption, despite the mountains of propaganda from evangelists arguing that Bitcoin is the future of money…

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