Bitcoine approaches the exchange in Chicago. But several countries have pronounced prohibitions or restrictions on using or speculating in Bitcoin. And my thinking is that Bitcoine is too violent and is speculatively dangerous for many countries so far.

It is really hard to say anything about bitcoin bubble. Actually, can we be so sure that there is a bubble? I thought that the bitcoin value of USD 3000 is a bubble, but I made a mistake (now it is more than USD 16.000). We live in a new age, so there is a new financial instruments, new way of thinking regarding financial market and money. So we cannot know what will happen, but we have to closely monitor financial market and react promptly. Maybe bitcoin is a new way of payment or investment? We should not underestimate it. Few days ago CBOT has issued first futures on bitcoin. Because of this I think that is really hard to say is there any bubble in bitcoin? Maybe this is the real value of bitcoin? Who knows. The future show as.

Dear Tijana,

The value of blockchain technology is great. However there are certain obstacles to bitcoin:

1. Not traceable and controllable in terms of transfers - governments dislike this. the Fed already warned trading bitcoin might be against SEC regulation.

2. Transfer and payment outside the banking system - banks dislike this concept

3. Non national entity issuing money - again nation state sovereignty issue

4. Finally since most transactions are related to speculation rather than value of bitcoin as a means of exchange strongly play into the bubble concept.

Therefore a safe bet would be against bitcoin at this point in time; the only rational choice. But as one economist pointed out - markets can be irrational for longer than you can be liquid :)