Two sides of the bitcoin - wonder currency or tulip mania?
The virtual money is being hailed by fans as the wonder currency of the future and by detractors as the short-lived tulip mania of the 21st century
It was one of the runners-up for the word of the year as chosen by Oxford Dictionaries; it has received a partial blessing from Ben Bernanke, the chairman of the US Federal Reserve, but a warning from US law enforcement agencies; it has soared in value by 5,000 per cent since the start of the year.
But financial authorities, not to speak of economists, are sharply divided on whether the bitcoin is the currency of the future or an empty promise with nothing to back it so that it will and should fade away.
The hearings before the US Senate last week illustrated the concern about virtual currencies, and particularly bitcoin.
Committee chairman Senator Tom Carper set the scene. "Virtual currencies, perhaps most notably bitcoin, have captured the imagination of some, struck fear among others, and confused the heck out of the rest of us, including me," he said.
He is worried virtual currencies could ease the sale of "weapons, child pornography, and even murder-for-hire services".