It seems everyone is excited about Bitcoin at the moment – in either a positive or negative sense. For as many out there espousing it’s virtues there seems to be just as many labelling it as a bubble and as an accident just waiting to happen.

Whilst the underlying technology is potentially game changing and worthwhile, its other attributes do concern me. The exact things that make bitcoin attractive – anonymity, ease of transfer from one party to another, lack of government oversight, accessible in any country without capital controls, not subject to banking regulations – are denounced by national governments. Think of everything governments stand to lose.

Aside from this it’s volatility and seemingly unrealistic valuations worry me most. In the past 24 hours alone we’ve seen the currency reach record highs only to plunge 20% within hours. It’s extremely volatile! In fact it’s fallen by at least 25% on three separate occasions in 2017 already! I also get very nervous when I struggle to find a way to attribute value to the very high prices that Bitcoin is commanding today. Sure, there are some who have and perhaps will make huge profits on Bitcoin, but it also seems very likely that there may be many that get left holding the bag.

So, do I think it is a good investment? No, it’s way too volatile and in my view more akin to a day at the races. Whatever happens, It will be interesting to plot it’s journey going forward….. Please find the attached article that explores the attributes and issues around Bitcoin in more detail click here