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  • As Bitcoin continues its surge of record valuation, mixed opinions remain about

  • whether this is really the next big thing or just a fluke waiting to implode.

  • Getting a piece of the action could be fiscal genius or disaster.

  • Here's why this matters.

  • Bitcoin has seen a 1,000% growth since the start of the year,

  • growth unlike anything we've ever seen before.

  • This may sound impressive, but the warning signs are there that the cryptocurrency

  • could be headed towards a massive fall.

  • For one thing,

  • traditional currency is usually backed by something external in value, like gold.

  • Bitcoin's value is determined by investor interest, which is much harder to predict.

  • And, so far, the cryptocurrency hasn't reach widespread use,

  • nor is it likely to in the near future.

  • At least for now, this makes the digital currency

  • more of an investment opportunity than a transactional unit.

  • But Bitcoin doesn't have a financial administrator,

  • so its value is entirely speculative and extremely volatile.

  • If you own a piece and the whole value tanks, the share is essentially worthless,

  • and all the money invested is gone.

  • It's hard to imagine a financial institution being sympathetic in that situation.

  • JP Morgan boss, Jamie Dimon, put it bluntly in September,

  • calling the digital currency a fraud that would ultimately blow up.

  • He said, for countries like Venezuela or North Korea,

  • or the dark web where people can transfer money anonymously,

  • there might be a market for it, but it's limited.

  • Otherwise, he called it stupid and dangerous.

  • But not all fiscal experts and investors are wary.

  • Many hedge funds have decided to include Bitcoin in their portfolios.

  • CME Group, the world's largest futures exchange,

  • plans to launch a futures contract for Bitcoin by the end of the year.

  • And some realtors are even accepting Bitcoin for property.

  • It's possible that this is the start of a new age of digital currency.

  • But if Bitcoin continues its historic surge and pops,

  • it will likely be seen as a major, perhaps fatal, setback for cryptocurrencies.

  • Not only will a lot of investors be out of a lot of money, but

  • the idea of a sustainable digital currency might be damaged for good.

As Bitcoin continues its surge of record valuation, mixed opinions remain about

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Bitcoin Soars To Record Valuation--But Will It Last?

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    Jerry posted on 2017/11/30
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