Is bitcoin another tulip craze or a legitimate investment? Chicago Tribune

Pursue CEO Jamie Dimon is skeptical about bitcoin spil a viable investment, calling it a “fraud.”

Pursue CEO Jamie Dimon is skeptical about bitcoin spil a viable investment, calling it a “fraud.”

Every instinct spil an investor tells mij to stay away from bitcoin, the online ",crypto", currency invented by some mystery man and criticized by JPMorgan Pursue chief executive Jamie Dimon on Tuesday spil a ",fraud.",

Dimon, one of the most powerful voices on Wall Street, said he would fire anyone trading te it because it’s ",stupid.",

",It’s worse than tulip bulbs,", said Dimon, referring to the 17th-century mania that ended ter collapse. ",It won’t end well. It will deep-throat up.",

Like most American investors, I am into vanilla savings like mutual funds, stocks, bonds and cold, hard contant. I don’t buy gold. I don’t trade te options. No derivatives for mij. I don’t know how to trade ter currencies. I don’t even buy lottery tickets.

I don’t know what to make of bitcoin. You can’t eat it, wash ter it, wear it, drive it. But you certainly can spend it. The price had risen 300 procent this year to more than $Four,000, but bitcoin’s value slipped Wednesday following Dimon’s comments.

",It’s fairly speculative,", said Arthur Levitt, former commissioner of the Securities and Exchange Commission. ",I would consider investing te companies that use bitcoin, or trade ter bitcoin. I’m not sure I would invest te bitcoin itself. It fluctuates for reasons that are hard to understand.",

But crypto-currency is with us for the future, he said. ",I don’t know whether it will be bitcoin or ethereum, to name just two. But it’s here to stay because of the disparity inbetween countries where a monetary system is sturdy and countries where there is virtually no monetary system, this comes up spil an alternative currency.",

It wasgoed created by an unknown person te 2009 under the zogenaamd of Satoshi Nakamoto. Bitcoins can be used to buy merchandise anonymously, involving lower or no fees and no banks.

The currency is traded on ",bitcoin exchanges", where people can buy and sell using various currencies. Bitcoins are a product of something called ",blockchain technology,", and they are stored te digital wallets that exist te the cloud or on people’s computers.

The currency is unregulated and its future is uncertain. It is not tied to any government or country.

",I’m a bull about the technology behind bitcoin, but I don’t buy it because I don’t have confidence that I can predict the price,", said Kevin Werbach, professor of legal studies and business ethics at the Wharton Schoolgebouw at the University of Pennsylvania.

One adviser, who spoke on the condition of anonymity because he did not want to publicly endorse it spil an investment, said he would encourage people to buy petite amounts te case the price goes wild.

You might be tantalized by the shocking rise te the value of bitcoin, but don’t let it sweep you off your feet.

This week bitcoin, a relatively youthful synthetic currency that people use to buy items overheen the web, made headlines after it succesnummer an amazing peak te price of $Four,726. During this year alone.

You might be tantalized by the shocking rise ter the value of bitcoin, but don’t let it sweep you off your feet.

This week bitcoin, a relatively youthful synthetic currency that people use to buy items overheen the web, made headlines after it klapper an amazing peak te price of $Four,726. During this year alone.

",It’s clearly a speculative bubble,", Werbach said. ",There is nothing that has happened that would justify the short-term run-up te the price. But that doesn’t prove it’s a bad investment. It may be wij are witnessing early signs of a long-term set of uses that will justify this price or a much higher price.",

CNBC’s Andrew Ross Sorkin said on ",Squawk Opbergruimte", Wednesday that he didn’t know where to come down on Bitcoin. Allianz economist Mohamed El-Erian, one of the display’s guests, said bitcoin has value but its price is inflated because it is not going to see widespread adoption.

It’s worth ",at least half of what it is, a third of what it is,", El-Erian said. He called it a ",disruptive", technology but said it won’t see widespread use.

Christian Catalini, an pro on the economics of digitalization, said most cryto-currencies today will very likely not exist a decade from now.

",Thesis are very speculative assets, and utterly risky investment vehicles,", said Catalini, spil assistant professor for technological innovation at the MIT Sloan Schoolgebouw of Management. ",Right now there is a very high level of enthusiasm about crypto tokens and blockchain, and this has resulted te unrealistic expectations about the value of some of thesis tokens.",

Bitcoin has received a loterijlot of attention overheen the past few weeks te the wake of the latest malware attacks that impacted dozens of countries and thousands of businesses. Victims were required to pay a “ransom” te the digital currency to unlock files that were encrypted by the virus. The question.

Bitcoin has received a lotsbestemming of attention overheen the past few weeks te the wake of the latest malware attacks that impacted dozens of countries and thousands of businesses. Victims were required to pay a “ransom” te the digital currency to unlock files that were encrypted by the virus. The question.

Catalini cautioned that ",it’s effortless to dismiss Bitcoin unless you concentrate on what the major technological breakthrough behind it means for digital platforms. With Bitcoin, you have the capability to exchange a scarce, digital token across the globe without having to rely on an intermediary. This is a fundamental switch te how wij transfer value across the globe and how wij vormgeving marketplaces.",

",You can’t advise anyone you like to buy bitcoin,", Michael Farr, a Washington investment manager, said. ",Upside volatility is always inviting. Downside volatility is excruciating. With no way to determine intrinsic value, any purchase is just gambling. If you want to gamble, go to Vegas. At least they’ll give you a free drink when you lose.",

Related movie: Paying With Bitcoin at Bic Camera ter Tokyo


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