Bitcoin Is Now Doomed

What is Bitcoin? It is a virtual cryptocurrency, which means that it has no substance and is not underwritten by anyone or any asset other than its creator's reputation. It has an imaginary or perceived value.

Bitcoin and other crypto currencies have their supporters, particularly amongst the online gaming and gambling community. They claim they meet the needs of the Internet instant economy. That it is a modern state of the art technological solution and that avoids the slow, expensive and regulated banking system.

Critics of the software argue it is unregulated, exposed to abuse, and being encrypted is secret between two parties. They claim it is yet another dot.com bubble waiting to burst.

In December 2017, Andrew Bailey, head of the UK's Financial Conduct Authority, echoing Chris Woolard, his Director of Strategy & Competition's warning in June 2017, announced that investing in bitcoin was akin to gambling as they are not regulated, not within the remit of central authorities or have the consumer protection of traditional assets and, are therefore, not a safe investment.

In an interview with the BBC's Newsnight programme he said, "It is a very volatile commodity in terms of its pricing. If you want to invest in bitcoin be prepared to lose your money that would be my serious warning. However, in response to CBOE's recent launch he added, "If you buy a future or if you buy an option then we do come into the picture." The latest cautions follow the FCA's formal warning in September 2017 about Initial Coin Offerings, when it stated they were "very high-risk, speculative investments."

Jamie Dimon, CEO of JPMorgan Chase has labelled bitcoin a fraud that would eventually blow up and Warren Buffet has urged traders to "stay away from it," calling it a "mirage."

All bubbles burst.

If any investment rises 1000% in a year and suffers extreme volatility, questions must be asked.

Some argue that the recent listing of Future Bitcoin on the NASDAQ is proof positive that it is a highly risky "investment."

This is precisely what Bitcoin is – a highly risky investment. It is not a currency... backed by reliable data, economic factors, political and social policies, a track record, assets, governments and, crucially, a financial protection or insurance scheme. It is driven entirely by price. As such its temporality and very existence relies on perception and trust.

Other critics voice much stronger concerns. They claim its massive growth in price is as a...