Bitcoin Values Become Highly Speculative

Episode 1446 (01:39)

Bitcoin

With a current value of over $14,000 per, Bitcoin has skyrocketed in value in the last month, but has also dropped dramatically in the last few days. Leo says the Bitcoin craze reminds him of the Holland Tulip Craze of the 1600s, where tulips became all the rage, prompting people to even offer land for a single tulip bulb. Bitcoin is just like that.

Bitcoin is generated by mining it through solving complex computations through a computer. But Leo says that while the value is crazy, it's not really worth much as far as what you can do with it practically. Even CoinBase, which handles conversion of bitcoin to actual dollars, says that it will be a long time before they are useful. The same is true with other cryptocurrencies like DogeCoin or Etherium. There's also the issue that your Bitcoin wallet can easily be stolen by being hacked. Which is why you'd need to download and verify the blockchain of transactions.