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Bitcoin price mimicking the trajectory of money in the 1970s: legendary merchant

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The legendary trader Mark Fisher sees similarities between the dramatic rise in the price of bitcoin and the trajectory that took the price of money during the 1970s.

Fisher, founder and CEO of MBF Clearing, told CNBC's "Fast Money: Halftime Report" that he believes that the spectacular progression of bitcoin since the beginning of the year is the equivalent Modern money race at the end of the year. 1970 after the collapse of the Bretton Woods system.

"Bitcoin was what the money was in the late '70s and' 80s – that's for sure," he said. "" No rhyme or reason. "

In January 1970, an ounce of silver traded on average $ 6.08. During the decade, the price of silver doubled, an understandable phenomenon since the US dollar decoupled from the price of gold in 1971. However, in 1979, the price of silver was doubled. money began to explode, and by the end of the year it had more than quadrupled. In January 1980, silver reached an all – time high of $ 49.45 – $ 111.84 in today 's dollars – after which it began a prolonged decline that eventually reached a record high. $ 4.05 in 2001.

Corrected chart of inflation to show the price of money in today's dollars # 39 | hui | Source: MacroTrends

Bitcoin, meanwhile, grew by about 1,500% last year, and Tuesday it broke $ 12,000 for the first time.

Fisher craigs two price movements – including the implicit assumption that bitcoin will crush just as hard as money – up to the same phenomenon, namely that assets that seem at least be disconnected from Wall Street capture the imagination of the particular investors.

"The reason people are so attracted to bitcoin, is because people want something that moves a lot, that there is not Wall Street, "Fisher said. "The thing that every cab driver talks about all day."

Of course, Bitcoin is about to make its first foray into the Wall Street markets, as future bitcoins are expected to be launched on Cboe on Sunday – and Fisher is excited, even though he's not. not optimistic about the "current iteration". "Cryptocurrency."

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"There will be great volatility," he said. "And for someone like me, who cares what it is, as long as it moves, is not it?"