We have all thought so, with no income and nothing backing it, and it went zooming from nearly nothing to over $19,000, only to fall back hard down to around $3000, where it more or less hung out for a couple of years with the occasional up to $6000 or so. But recently it has moved up to over $18,000, near its previous peak, and some other cryptocurrencies have also moved up sharply, with #2 Ethereum essentially doubling in price in the last month or so. So, is this another round of bubble speculation that will be followed by another crash?
I note that some other non-monetary assets have been moving. After long sitting around $1200 to $1300 per ounce, with reportedly the Chinese central bank keeping it above $1000 whenever it occasionally headed down in that direction, gold this year has also moved up to near its old high. It is now over $1800, not far from its previous high of over $1900.
Oil is not anywhere near a high, but just in the last week or so has suddenly been moving up. While hanging our around $40 per barrel for both Brent crude and West Texas crude for a long time, and even down almost to the mid-30s not too long ago, Brent as of today is at $48.70, pushing 50 for the first time in a long time, with WTI a few dollars behind.
Some are saying all this is due to a fear that the US dollar will collapse. Maybe, although I do not know. It is not screamingly obvious why that might happen now more than at other times. Pro Trumpers might push this, but they were pushing the stock market would collapse if Biden won. And, heck, the announcement of allowing transition to Biden sent the Dow over 30,000 for the first time ever, not exactly a collapse, although Trumpers say this is all due to the vaccine hopes, and all that is due to Trump. Sure.