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Lesko: A Recent Change with Bitcoins

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BINGHAMTON, N.Y. -

Jonathan: Just a few years ago bitcoins weren’t doing so well. That’s changed recently -- and Greg Lesko of Lesko Financial has an update. Greg?
 

Greg: Thanks, Jonathan. Not that long ago, bitcoins were the hot new buzz in the financial world. They began as a digital currency a virtual payment method--and people began buying them in the hope their value would rise and they’d make money. After many ups and downs, the price of bitcoins began to surge this year. It hit the $3000 mark before dropping back to the upper 2000’s. Now, many people wonder if they should jump on the bitcoin bandwagon so they don’t lose out on a good thing. But prudent investment advice would urge caution about bitcoins.    

Jonathan: Why is their value surging now?    

Greg: Some analysts think developments in the Asian market may be driving up the price. Some think Great Britain may be stockpiling bitcoins to pay off hackers if another cyber attack occurs there as it did in may. It could also be due to market speculation.

Jonathan: Should investors be wary?    

Greg: Yes for several reasons. First, bitcoins are part of the mysterious realm of “crypto-currencies” which are very complex and mostly unregulated.
Also, there are major disputes among those involved in bitcoin operations over their creation and how transactions are conducted; some believe that could collapse the whole bitcoin universe. And there are other virtual currencies competing with bitcoins, but the big reason is the uncertainty. No one can predict whether they’ll go up or down in value next month, next week or even tomorrow. That makes putting money into bitcoins more like gambling than investing.