The Bitcoin is a concept that was first introduced by Japan’s Satoshi Nakamoto as a decentralised global digital payment system designed to negate third party interference during the course of an online transaction. But today, Bitcoin is being seen as the future of currencies as we know them, and as an attractive investment opportunity. I however believe that the Bitcoin is not an effective currency because it neither has transaction value, because it can’t be used to buy or sell stuff, nor does it store any value because it has no purchasing power in the first place.
And at the same time it is dangerous to invest in Bitcoin right now because prices are being driven more by speculation than by the actual underlying fundamentals, which is why I personally feel that it is only a matter of time before the Bitcoin party ends, and that all those who stay invested in Bitcoin for too long are destined to meet a tragic end and lose a truckload of money. So it would be wise for anyone at the Bitcoin party to quit and come home before they end up with a nasty hangover.
And while I feel that a digital currency is definitely the future on a 10-15 year time period, and we may well have a better online currency at the end of the 10-15 year period, I am fairly confident that the Bitcoin in its current incarnation doesn’t quite fit that bill, and that therefore the Bitcoin is more likely to be just another ‘flavour of the month’ story and not a paradigm shift in the world of currencies and online transactions.