Rise of crypto-currency Bitcoin puts financial watchdogs on guard,
The average sticker price for a car in America is around $35000 although economy-conscious buyers can still choose from a few dozen models under $20000.
Or about the price of one Bitcoin.
You can’t drive a Bitcoin or kick the tires. Despite the pictures you see in the media it’s not a real coin you can put in your pocket. But unlike a new car which depreciates the second you drive it off the dealer’s lot Bitcoin’s price has defied gravity rising this year alone from $985 to almost $19 000. Daily price fluctuations of 20% are common.
Bitcoin was invented by a computer programmer bearing a Japanese pseudonym after the 2008 financial market collapse. The idea was to create an alternative to global currencies such as the dollar euro or yen backed by governments and central banks who had fallen into disrepute due to their economic mismanagement.
Will Bitcoin one day become a competitive global currency and store of value or is it merely a newfangled speculative trading vehicle lacking intrinsic value that will eventually crash and burn?
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