With all the recent interest in Bitcoin and crypto-currencies, many people have been moving money into the Bitcoin system and stories abound of people making a rapid fortune, or finding that forgotten wallets from the early days now contain life-changing amounts of money. This week has seen US Congress hearing information about opportunities and threats from digital peer-to-peer currencies. In the news, hopeful people have been quoted saying that they expect to be millionaires by next year after buying $100 worth of Bitcoin.
In this article, I examine the possible investment upside of virtual currencies, and Bitcoin in particular. I then discuss some of the threats that investors and adopters must watch out Continue reading