Over the last 12 hours, Bitcoin has taken its largest single day surge in exchange rate value in several months.
On http://www.btcchina.com, China’s largest Bitcoin exchange, bitcoins are now worth over 1000 CNY.
What exactly does this mean?
It wasn’t many months ago when Bitcoin broke 100 USD and the 100 Euro mark one after another in a crazy run up to the current all time high of 266 USD/BTC (About 1621 CNY/BTC); however, it became clear to many of us during that… first moon landing… that there was some strength to the claims of psychological barriers associated with these large numbers. Some sort of bastard combination of Benford’s Law and the Efficient Market Hypothesis led the laggy Bitcoin traders from atop mount Gox to venture down to the giant sell walls and lay waste.
While western traders are scratching their heads in bewilderment, there are many traders in China and HK smiling in their sleep as I type this.
This potential third Bitcoin bubble is in the making; and you know, “Third time’s the charm.”