Bitcoin goes parabolic

THIS column has twice spoken about cryptocurrencies and more specifically, bitcoin. The first column entitled “Can Cryptos Be an Asset Class” was published in December 2020, and the second “Has Bitcoin Become Mainstream?” was published earlier this year.

The first set of arguments ended with the conclusion that bitcoin doesn’t make sense as it has no intrinsic value, it is not a currency, and is highly volatile. It is also not backed by any asset nor legal tender and is highly speculative.