Bitcoin’s Magic Is Fading, And That’s A Good Thing

Bitcoin is no longer the magic internet money that it’s long been branded. There are no dark forces causing it to behave the opposite of traditional markets. There is no algorithm that forces it to zig when the rest of the world zags. In large-part, there are just a lot of freaks and weirdos, disenfranchised idealists, citizens of countries with untrustworthy central banks, doing things that traditional investors think are crazy.

From the outside, all these seemingly irrational early bitcoin owners doing unorthodox things with an asset that doesn’t rely on any central bank or securities depository, gave the appearance that bitcoin wasn’t correlated to traditional markets, or even safe-havens like gold. After all, when the S&P 500 dropped, bitcoin shot up. When banks in Cyprus collapsed, bitcoin was…