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Venturing into Bitcoin

Posted on Tuesday, June 7th, 2011 in Uncategorized by Nick

Bitcoin is all the rage right now. Everyone from web designers to underground drug rings are using it and it is hitting an all time high trading price.  If you have never heard of Bitcoin, it is digital currency created in 2009 by Satoshi Nakamoto that avoids central authorities and issuers by using a peer to peer network.

I have been watching Bitcoin for a while now and I am setting up a little experiment. I will buy 2 Bitcoins over at Mt. Gox (trading at $18 at the time of the post). My goal is to make as much money as possible buying and selling Bitcoins from the initial 2 Bitcoin investment. Every week I will post the weeks end profit or losses and the expirment will end when I hit $0 (or 0 Bitcoins) or when the I decide to sell out before Bitcoins bubble burst.

On the that Bitcoin bubble though. Currently it his hitting an all time high, which is good and all, but it is hitting that high because of the tech bubble we are in right now and the underground drug markets that are springing up using this currency. Just look at the chart below:

Since May of 2011 it has shot up like a rocket, but overall it is flat and trading well below $18. So right now its make or break.

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