I have written about Bitcoin before. Here is what True Bitcoin looks like, that is Bitcoin stripped from the effects of inflation.
True Bitcoin hit an all-time high at the end of Q4 2013. Since then True Bitcoin has fallen -53.4%. In the first part of the fall, True Bitcoin fell at the rate of -61.4% a year. After recovering a bit between Q2 and Q3, True Bitcoin picked up its rate of fall to -66.1% a year.
At those fall speeds, I can't see a reason to buy Bitcoin. Then again, never could I see good cause to get mixed with Bitcoin.
To give you more perspective, true price of Bitcoin is $31.96 in True Dollars™. An ounce of gold sells for US$92.82 and US$1 comes to 8¢.
The average True Price of Bitcoin before the hype hit ran GW$0.72. In current dollars, that would be $8.97.
And when you think about it, if you were paying for a service that would keep your identity hidden to purchase illegal products like street drugs and prostitution, what would be the premium be for that service? Would paying in about an 8:1 ratio sound right?
As competitors enter into the marketplace offering the same service more efficiently, wouldn't you expect to pay less for the same service over time?
Right now, Bitcoiners are paying about 31:1 for the service. That seems like a steep price to pay to buy street drugs and prostitutes as well as avoiding taxes for selling such things.