Introducing bitcoin

  • Bitcoin is experiencing an investment boom, but not all bubbles result in failure.
  • The first part of the bitcoin blockchain is the ‘ledger’ which is decentralised and distributed to everyone so they all have the same copy of the ledger.
  • Sensitive personal information could be securely stored on the blockchain which means blockchain offers the possibility of a true ‘digital passport’.

 Bitcoin overlaid with financial market charts

Bitcoin’s wildly volatile price swings have dominated recent headlines, and the meteoric rises in price of both bitcoin and other cryptocurrencies have led many to declare it as nothing more than a speculative bubble.

A history of investment bubbles — railways, dotcoms and cryptocurrency

The recent frenzied exuberance for bitcoin by mainstream investors echoes the greed of the dotcom bubble of the 1990s.

To dismiss the underlying technology because of an investment bubble is short-sighted. History has shown that bubbles do not necessarily doom a technology to failure.

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