Bitcoin Savings & Trust Comes Up $40 Million Short On The Trust Part

Bitcoin is the buzz! Well, the latest buzz anyhow in the weird world of cyber-currencies. It seems like only yesterday that Liberty Reserve went down, see this but here we are again.
This article is not whether Bitcoin is going to make it or not as a cyber-currency. There are thousands of articles out that positing that Bitcoin will be different, that this time it is the real thing. Most of those articles seem to written by folks promoting Bitcoins. But there are a few well-researched articles out there that warn that Bitcoin’s days are numbered, see this as just one example.
Again, this article is not about any of that. If you want to invest in something that doesn’t materially exist, then I’m going to be no more critical of you than I would be of anybody who invests in complex derivative contracts on the major stock markets, which are traded by the billions everyday – just ask any partner, er, former partner of Lehmann Brothers about those.

This post was published at Forbes on 9/25/2014.