Bitcoin enthusiasts are in the middle of an existential crisis. Since its mid-April high, the price of Bitcoin has tumbled by as much as 47%. Meanwhile, China — where up to three-quarters of the world’s supply comes from — is curtailing mining and trading. And how solid a rock is the world’s largest cryptocurrency when a few cryptic tweets from Tesla Inc. founder Elon Musk can send it wobbling? Institutional investors have been heading for the exit — for gold.
But true believers take heart! Other investments require even greater leaps of faith. You can do a lot worse than Bitcoin.
Bitcoin has a simple concept: It is a digital token with a finite supply that’s been around for 14 years. By comparison, in the traditional world of stocks and bonds, you’ll be hard pressed to find assets that have such investor enthusiasm and such a clear story to sell.