Bitcoins

The video this week is regarding bitcoins, which have become a constant topic in my newsfeed recently.

Bitcoins are a virtual currency that elimates the need for banks. They have made the news recently as the value of 1Bitcoin has reached $260, but also recently fallen to $70. Their price is extremely volatile, but there is always money to be made with volatility.

My view?
Being part of open-sourced software, meaning anyone can review the code, makes the bitcoin vulnerable to cyber attack (recent attack on bitcoin?), and being an unregulated market where the programmers could adjust the fundamentals of the Bitcoin without regulated consequence, I personally don’t find Bitcoins a good investment. It seems that their current price has been driven by emotions rather then fundamentals (recent drop mainly result of panic selling) and being a novelty currency, of which I have little relative understanding, it would be too risky to invest.
However, it seems that some people deem it a good way to make some money – including the Winklevoss twins (source: bbc)

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