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Now that bitcoin prices are ugly, decide if it’s worth an investment | The Seattle Times

For the many people confused about bitcoin, here is an incomplete primer:

Bitcoin, currently, is the best-known digital currency in the world. A digital or cryptocurrency is a form of money that you can’t hold in your hand, but you can buy/trade online and store in a digital wallet (think “electronic vault”). Where traditional currencies are influenced by the monetary policy of the issuing country’s central bank, plus inflation and exchange rates and more, the price of bitcoin or any digi-currency is determined by supply and demand on the exchanges where it trades.

Demand is like rocket fuel to bitcoin’s price; unfortunately, the tank can empty just as quickly as it can fill up. The price of a bitcoin went from about $350 four years ago to nearly $20,000 late last year, and now has fallen back to roughly $3,750. Riding that roller coaster, a trader could have made and/or lost several fortunes on that action.

In that kind of environment, the big winners and losers have plenty to crow about, most of it sounding like “I told you so.”

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Now that bitcoin prices are ugly, decide if it’s worth an investment | The Seattle Times.