Bursting Bitcoin’s bubble

Many have welcomed Bitcoin as a return to the gold standard. In truth it is an unwelcome return to Dutch tulip-mania.

I first heard about Bitcoin almost three years ago. I was chatting with an impressively drunk Russian who told me about the virtues of a wonderful new digital currency. I thought he was having a lend of me; trying to wind up the economist for his own amusement. It sounded like something out of World of Warcraft rather than a legitimate financial instrument. 

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