X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
While digital currency created new millionaires in 2017, real world applications remain limited. (Photo: iStock)

In December of 2016, the cryptocurrency bitcoin was valued at a little over $600. Today it has reached nearly $18,000. So what’s fueling bitcoin’s increase in value? And with a 1,000-fold increase in bitcoin value over the past five years, are we staring down the barrel of a massive “bubble,” similar to what happened with Tulips in the 1600s, the dot-com implosion, and the 2008 financial crisis?

An investment in bitcoin differs from traditional stocks and bonds because it does not pay revenue to the owner, such as a stock paying dividends. Bitcoin is very similar to gold in this regard. According to an article in Ars Technica: ”Gold’s value defies conventional market analysis in much the same way bitcoin’s value does. Gold doesn’t pay a dividend and only about 60 percent of the world’s gold supply is devoted to jewelry or industrial use.”

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

Nick Graf

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.