Nine years after being developed, one of the hottest topics on social media and the markets lately has been the cryptocurrency Bitcoin.
The currency’s creator, a person using the alias of Satoshi Nakamoto, is still unknown, but the value of Bitcoin has been rising steadily until December. In November, the price per one coin was $8,100. By Dec. 15, the value more than doubled to $17,900.
Craig Van Dyke, risk management with Top Third Ag Marketing, is hesitant that “currency” would be the word he would use to describe Bitcoin, but he would call it a “speculative asset.”
Between the grain market and commodity market, volatility is hard to come by. Van Dyke thinks this could be a place for the commodity market to take notes.
“Just like in commodities, similar to Bitcoin—similar might be a stretch—there’s no specific equation that says X supply minus Y demand should equal Z price,” he said on AgDay. “We forget that a commodity market needs to be at a certain level.”
He said there needs to be respect for the trends, just like those Bitcoin is experiencing.
Hear his full analysis on AgDay above.