Bitcoin’s Wild Ride Shows The Truth: It Is Probably Worth Zero - WSJ

Bitcoin’s Wild Ride Shows The Truth: It Is Probably Worth Zero – WSJhttps://www.wsj.com/articles/bitcoins-wild-ride-shows-the-truth-it-is-probably-worth-zero-1505760623If we assume that Bitcoin will either succeed completely in displacing gold or fail and be worth zero, it helps explain why the digital token has been so incredibly volatile, with a 40% loss in two weeks, and a 33% rebound since Friday’s low. Based on the simple choice between total success and failure, we can very roughly say that Bitcoin at 70% of the gold ETF-derived price suggests a 70% chance of displacing so-called paper gold as society’s chosen emergency store of value, and a 6% chance of displacing physical gold. Even digital dreamers should accept that is far too high.