Crypto Goes Up and Down, But Is It Getting Anywhere?

Bitcoin followers have seen this movie before: In the first half of 2019 Bitcoin soared again, more than tripling in value before sliding by more than 40%. What was new this year was that Bitcoin, the original cryptocurrency, had to share the spotlight more than ever before, as bankers, regulators and crypto’s true believers debated the merits of Facebook’s proposed Libra digital coin. As the dust settles, investors and regulators find themselves still grappling with the question first raised when Bitcoin broke into public consciousness six years ago: Are cryptocurrencies the future of money? And a new one: If so, what kind of coin will catch on?

You mean, why did legendary investor Warren Buffett call it “rat poison squared”? There’s a long list of reasons. Besides the massive price swings, Bitcoin and other cryptocurrencies have been connected with scams, money laundering, tax evasion, cyberthefts, excessive speculation and more. Risks like these may have been easier for regulators to overlook when Bitcoin and its peers sat on the far fringes of finance, but they are moving ever closer to the mainstream, particularly in crypto’s newer forms.