The Bitcoin looks like a 'bubble' on steroids. It needs to settle down and stop being a commodity for it to succeed.
According to Jesse Colombo, an independent financial analyst and investor who keeps close tabs on bubbles at TheBubbleBubble.com, the Bitcoin bubble is currently in a mania phase.
While Colombo doesn't believe the Bitcoin is doomed to fail, he expects prices to retreat back to pre-mania levels -- less than $15 apiece.
It's hard to predict when investors will realize they're paying too much for Bitcoins, but it won't take much for prices to drop quickly. Given that the Bitcoin market is small, all it could take is just one large sale to give investors a reality check, said Colombo.