SINGAPORE (Apr 30): Does anyone remember Bitcoin? You know, the investment opportunity that just six months ago had everyone talking as its price shot up from US$4,395 on Oct 1, 2017 to a high of US$19,343 on Dec 16, 2017 (see Chart 1). Investors quadrupled their money in less than three months, and those who had held on to their Bitcoin from the early days experienced mind-boggling returns. Tales of newly minted Bitcoin billionaires created a veritable gold rush as investors piled into the digital currency hoping to strike it rich.
You know how the story has played out since then — Bitcoin prices have plunged as regulators, alarmed by the surge of interest in unregulated cryptocurrencies, clamped down. As at April 17, one Bitcoin was worth only about US$7,890, according to Coindesk, 40% of what it was at its peak. Investor interest has accordingly subsided.