dave_j

I'm intrigued by this phenomenon that is the crypto currency, in particular the intangible currency that calls itself the Bitcoin.

Everyone on this site will be young enough to remember that in 2010 the bitcoin traded at $.08, that's right at 8 cents. Unless you've been hiding under a rock with no connectivity, you will have heard that the bitcoin peeked at about $17k recently. For those without a calculator handy that represents a return of a multiple of 212500 times, so an investment of $10 in 2010 would have returned $2M today. Of course this wouldn't have happened because, if you're like me you'd have sold when it was 16 cents and patted yourself on the back only to shoot yourself later for being so stupid.

Now I'm not one to regret decisions taken and I remember thinking at the time that the bitcoin could have no future, based as it was on fresh air, but what do I know? I picked up the tale again a week or two ago when it traded at $6k and was still scratching those bits we don't talk about when the trading value passed $10k.

I understand now that the bitcoin is simply a vehicle enabling the stronger minded to remove readies from the weaker and the current volatility still enables decent returns to be accrued by the fortunate at the expense of those who think fairies live athe bottom of the garden.

I'm still finding myself unable to understand a mindset that invests in what is so obviously a bubble. Am I stupid and should I start eating mushrooms and smoking the wobbly suff?

Shard

Equally mystified. I first heard about it when it was valued at about $500 and thought it sounded dodgy then. What I don't understand is how it is "mined" through algorithms.

Davita

I'm reminded of the 'Pump and Dump' method of increasing a stock value and who can forget Bernie Madoff who is spending his days in jail for his Ponzi scheme.