Bitcoin tops $10k and “this time it’s different” – The Wall Street Journal

Bitcoin is back (again). As the cryptocurrency enters another bull market, its fans are saying that this time it's different. And who knows, maybe it is. I certainly don't have enough technical knowledge or faith to put my personal savings into crypto. But that shouldn't stop anyone else who feels that they know better. Having said that, I would strongly encourage those planning to bet the farm – or at least, a substantial chunk of cash – on Bitcoin to spend some time reading the full pros and cons of the so-called digital currency. Bitcoin does not act like a true currency, in the sense that it is not useful for making payments and is not widely and freely accepted, and in the sense that it is not backed by a government. The costs of transacting in Bitcoin are very high (no matter what fans tell you, getting a transaction processed costs around 200 times what it costs to use a credit card on average, which you don't have to pay anyway). Bitcoin acts more like something like gold. It has, as yet, no practical real-world applications besides helping criminals hide their financial activity from the authorities (kind of like gold jewellery). However, many people think it makes a good store of value and believe that it is worthwhile to put your cash into it. Like gold, its price has been cyclical, although unlike gold it hasn't acted like a buttress against market uncertainty but rather has moved broadly in line with other speculative markets. It has made some people spectacularly rich, and has pauperised others. If that sounds like the asset for you, dive in. – Felicity Duncan

Bitcoin Is Back Above $10,000 and Investors Say This Rally Is Different

By Steven Russolillo and Paul Vigna

(The Wall Street Journal) Bitcoin rose over $10,000 for the first time in over a year, riding a new wave of optimism about the value and future of digital currencies.

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