Fed Reserve Chairman Ben Bernanke said virtual currencies "may hold long term promise…" A former hedge fund manager thinks that bitcoin could end up taking over part of gold's traditional role. It could also end up being worthless. Bitcoins can't be manipulated by a central authority. They are 7 times as volatile as gold. Some feel that this may or may not be a bitcoin bubble.
The Winklevoss brothers (of Facebook fame) are in the process of starting a Bitcoin ETF. Secondmarket has already launched a private fund called Bitcoin Investment Trust.
So far, it looks like Bitcoin is like a lottery ticket. There will be either a total loss or a very very high return. The hedge fund investor feels that one Bitcoin could be worth $1,000,000 --- if…
SOURCE: Wall Street Journal 11/23/13, p. B 7
Probably worthwhile to buy 1/10 of a Bitcoin for $73. Maybe it will be worth $100,000 (1/10 of $1,000,000) jpj
