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Analysis

(Bitcoin) The brutal truth about Bitcoin (Brookings)

Eswar Prasad writes for Brookings: Bitcoin, the original cryptocurrency, has been on a wild ride since its creation in 2009. Earlier this year, the price of one Bitcoin surged to over $60,000, an eightfold increase in 12 months. Then it fell to half that value in just a few weeks. Values of other cryptocurrencies such as Dogecoin have risen and fallen even more sharply, often based just on Elon Musk’s tweets. Even after the recent fall in their prices, the total market value of all cryptocurrencies now exceeds $1.5 trillion, a staggering amount for virtual objects that are nothing more than computer code.

go to Brookings website: The brutal truth about Bitcoin (brookings.edu)

Categorie
Analysis

(Bitcoin) Schrödinger’s Bitcoin (Project-Syndicate)

WILLEM H. BUITER

Notwithstanding the recent spectacular surge in its price, Bitcoin will remain an asset without intrinsic value whose market value can be anything or nothing. Only those with healthy risk appetites and a robust capacity to absorb losses should consider investing in it.

https://www.project-syndicate.org/commentary/bitcoin-bubble-price-volatility-investment-risk-by-willem-h-buiter-2021-02