Last November, when the digital
currency property Bitcoin was trading at more than $1,000 per coin, one overzealous Bitcoin booster couldn't see any way it would ever go down. And he was so sure of himself that he promised to eat a hat if BTC had dropped below $1,000 on January 1st.
It did. He did. And now an agonizing 46-minute video of this disaster has been posted to Reddit. (Before you ask: No, the hat was not a fedora. That would have been a lot funnier, though.)
Here's the bluster the Bitcoin enthusiast and haberdashivore posted to Reddit's bitcoinmarkets forum to lead us to this tragic point:
This market has a ways to go with us having been given the green light by the US government and I believe we have yet to see the price show the true market value for where we're at right now. I have no doubt that the market will overshoot bitcoin's "true value" but if I had to guess it'll happen much higher than we are and bottom out about where we are right now. I'll eat a hat on video with ketchup if we're below $1000 come January 1st. Tell me right now that if we hit 2000 you wont go in with all you got if the price dips to 1000.
The "green light by the U.S. government" came in a Nov. 18 Senate hearing, where an attorney for the Justice Department said, "We all recognize that virtual currencies, in and of themselves, are not illegal."
It was a far cry from "Bitcoin businesses can do whatever they want without being regulated or paying taxes," but that's what some investors seemed to hear. BTC shot up to $700 after the hearing, and hit $1,000 a week later.
Earlier this week, the IRS announced that Bitcoin is taxable as property. It's currently trading at around $535.