Bitcoins and bandwagons! Dr Benjamin Holdsworth explains the dangers of believing financial hype
In the past few months, it might appear – at least to some – that making money in markets is easy. Just buy Tesla or Bitcoin and you are sure to double your money.
That is to confuse gambling with investing, and these are certainly not recommendations.
Bitcoin– boom, bubble or bust?
In October 2008, a mysterious white paper was published by an unknown author titled ‘Bitcoin: A Peer-to-Peer Electronic Cash System’ and the world had been introduced to its first ‘cryptocurrency’.
Bitcoin is driven by ‘blockchain’ technology, which is a digital record of transactions. The main attraction compared to traditional currency was clear – Bitcoin provides a decentralised way for two parties to exchange value.
In other words, Bitcoin has no need for a governing body, no central bank and is merely a digital ledger that facilitates and records transactions.
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