Maybe a bit misleading with the headline as I’m going to point to it failing as mainstream currency.
Yesterday Adam pointed to security and government as reasons for it’s failure
My reasoning is pretty simple, it’s a fad.
The price today nearly matched gold as it rose to $1242. It’s not the only digital currency to rise though. Here’s the top 20.
Digital currency market 29 11 2013
The reason it will fail is because every Tom, Dick and Harriet is jumping on the bandwagon. There’s loads of digital currencies and they are all up on the back of bitcoin. It’s a modern day goldrush and just like that it is doomed to failure unless you’re in at the bottom or getting out at the top. Once the sheep have been slaughtered it may settle down as a functioning currency among those that actually use it for something other than speculation. Where the top will be when it blows up is anyone’s guess but I’ll bet you 10 bitcoins that we’ll hear more horror stories than fairy tales.
