Crypto-currency craziness

Portrait photo of man in blue suit with white shirt and pattern tie

Originally published on the Cape Gazette’s website

By Robert Jeter

November 9, 2017

Anytime an investable asset rapidly appreciates, you can be certain of one thing: people will all of a sudden be attracted to it, much like bugs willingly flying into a zapper. I know that analogy seems harsh, but for someone in my profession, that is what the rise in so-called “crypto-currencies” has felt like. If you are not familiar with the craze, Bitcoin and other crypto-currencies are unregulated forms of currency. They are digital in nature, so you can’t actually hold them in your hand, and they have seen an unprecedented surge in price appreciation over the last year or so. Bitcoin and other associated crypto-currencies have been receiving nonstop coverage from financial media, and it has now seemingly gone more mainstream. Even CNN now shows the price chart of Bitcoin after talking about the Dow Jones industrial average, almost like a typical investment. Not only that, but people I hardly know and who are barely aware of my profession approach me at the dog park to ask my opinion and if it might fit into their portfolio, as if I would serve as some sort of validation or have an explanation for why it would be a good investment. The truth of the matter is that I, like most people, do not have a clear understanding of how it works and therefore cannot call it anything other than what it appears to be at this moment: craziness.

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