At the beginning of 2017, the relatively obscure digital currency Bitcoin was trading for $973 for unit. By March, the price had risen to over $1,200, surpassing the price per ounce of gold. By October, one Bitcoin was worth over $5,800 and by last week, one Bitcoin was worth $14,670. That’s a return of over 1,400 percent — an increase of 15 times its initial worth in just one year. Small wonder then, that Bitcoin became a household word.
But is it for real, or is it just another speculative bubble, like subprime mortgages, dotcom companies or tulip bulbs back in the 1600’s? Adam Hayes is an economic sociologist with the University of Wisconsin and is also an instructor with the University of Nicosia in Cyprus. The University of Nicosia is the first college to offer a Masters of Science in digital currency. It’s an online course, and of course, you can pay your tuition in Bitcoin.
Adam Hayes joins Eight O’Clock Buzz host Brian Standing by phone.