Bitcoin has been a solid topic of conversation over BBQs this summer, due to the incredible surge in its price (in traditional currency terms!).

Depending on your point of view, if you are talking to someone who has traded Bitcoins, you are either thinking “Genius” or “Loser”.  And of course, if that person has already sold and made millions you just gaze in admiration (or ask for a loan).

So without even trying to understand the concept, why is there such divergence of opinion? Is it a “new paradigm” or is it simply two traditional forces at work – greed and FOMO (fear of missing out).

These are the classic ingredients for any bubble.  Many will recall the so-called “tech bubble” at the turn of this century, or even the property boom (and bust) in the mining towns a few years ago.  But perhaps an older story may help put things in perspective – Poseidon Nickel in 1970.

We suggest that anyone considering an “investment” in Bitcoin, have a look at Wikipedia under the title – Poseidon Bubble.  Then insert the word “Bitcoin” everywhere you read Poseidon.