Sooner rather than later the old story will end the old way, adding another chapter to the chronicle of investment folliesby Paul Wallace / December 13, 2017 / Leave a comment
Over the past few years most people have either ignored bitcoin, dismissing it as a fad that would fade away, or they have predicted an imminent collapse in its value. But it is now impossible to ignore the “cryptocurrency,” so-called because cryptography is used to secure and verify transactions and to shield the identities of its owners. Bitcoin continues to defy the naysayers as it soars ever higher.
This week brought the first trading in bitcoin futures, which started with a bang as prices initially surged by 25 per cent. At the end of last year each bitcoin was worth around $1,000. It surged last week from around $11,500 to a high of just over $17,000. After falling back it has since spiked even higher this week.
Yet bitcoin shares so many similarities with past investing frenzies that it seems certain to share their fate as well. The bubble will eventually burst and those who have bought the cryptocurrency most recently will be the greater fools.