Bitcoin Bubble? History says “no” – Bitcoin Mandelbrot

Recognition of self similarity is useful in the practice crypto trade.

 

Don’t be fooled by the alarmist journalists, or the supposed economists who cannot even read a log plot: http://www.businessinsider.com/williams-bitcoin-meltdown-10-2013-1

As a reminder; here’s the pretty log linear price 🙂

The log scale: from bitcoincharts.com

If bitcoin price movements are fractals, and fractals don’t have ends, but the bitcoin boom MUST end, well, hmm.  Bitcoin ceases to be a fractal some day.  Conclusion: bitcoin needs to make some radical moves to circumvent its mathematically certain death.  I still give it a fighting chance 😉

I must thank brilliant Forex trader and financial analyst Ed Matts [I sincerely recommend signing up for twitter just for this man: @EdMatts] for his refreshing take on currency pairs, stocks, and other markets for the inspiration of this image.  He is also a big part of the reason I have been able to stay one step ahead of bitcoin so far.  Thanks Ed!

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