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Bitcoin
BusinessBanking & Finance

Will a bite-size nibble be the best approach to get a taste of a cryptocurrency?

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In the San Francisco Bay Area, getting your hands on bitcoin is as easy as a trip to an ATM. Photo: Dreamstime/TNS
Ryan Andrews

Were the WASPish Winklevoss twins actually onto something? Their general unlikeability, as portrayed in the movie The Social Network, made them a topic of mirth, but they did develop the concept behind Facebook.

They were also the first public faces to extol the virtues of bitcoin. People scoffed and waited for the demise. After all, they were tangled up in a set of lawsuits surrounding the origins of Facebook, which was unseemly. How could bitcoin be worthy of attention?

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But bitcoin hit an all-time high in December, after undergoing some ups and downs that had seemingly spelt its end. Had you bought a bitcoin for US$967 on January 1, 2017, you would have realised a huge gain. By January 2 that same bitcoin would have been worth over US$14,000, though that was after a precipitous drop off from US$19,000 just before Christmas. In the summer of 2010, one bitcoin was worth just six US cents.

The rise of bitcoin, compared with major speculative bubbles in the history of global finance. The starting price is the price three years before each asset's high, or the earliest available price in cases with fewer than three years of stats. Picture: Bloomberg, sources: Bloomberg, International Center for Finance at Yale School of Management, Peter Garber
The rise of bitcoin, compared with major speculative bubbles in the history of global finance. The starting price is the price three years before each asset's high, or the earliest available price in cases with fewer than three years of stats. Picture: Bloomberg, sources: Bloomberg, International Center for Finance at Yale School of Management, Peter Garber
Is it time to reconsider this digital currency, or one of the many more that have been spawned?
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There are plenty of options, with over 1,400 cryptocurrencies in existence and a total market value estimated at US$550 billion, according to the latest Coinmarketcap data.

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