Bitcoin plunges as markets reopen

(Source: Bitcoin Charts)

After a 12 hour halt Mt. Gox has reopened Bitcoin trading and the currency has crashed by over a third. What this chart shows is just how small a correctiong that has been for an extremely volatile currency. Opening at $78 Bitcoins are now down 70 per cent from their peak, yet now at $83 the currency is four times higher than where it was in January.

Marc Sidwell argues that Bitcoin represents the powerful nature of networks:

The case can be made that, as media attention grows and more people buy in, Bitcoin’s non-linear price increases accurately reflect its non-linear growth in value.

Bitcoin is an imperfect example. Its economy owes much to hoarding and speculation. Still it reminds us that we live in an age where the value of connection is paramount. Digital innovation is disrupting our lives, challenging even national currencies. Yet we do not stop to think about what this really means.

(Full article)