Is bitcoin’s greatest strength also its greatest weakness?
The volatile virtual currency was the world’s best performer in 2016 but detractors are still predicting its demise
Hong Kong — The value of bitcoin surged above $1,100 on Thursday as the digital unit continues a dizzying rise that made it the best-performing currency of 2016. Analysts have suggested a host of reasons for its appreciation, from global uncertainty and a strengthening dollar to demonetisation in India and capital controls in China. Here are some key facts about bitcoin. Bitcoin is a virtual currency that is created from computer code. Unlike a real-world currency such as the dollar or the euro, it has no central bank and is not backed by any government. Instead, its community of users control and regulate it. Advocates say this makes it an efficient alternative to traditional currencies because it is not subject to the whims of a state that may wish to devalue its money to inflate away debt. Just like other currencies, bitcoins can be exchanged for goods and services — or for other currencies — provided the other party is willing to accept them. Bitcoin was launched in 2009 as a bi...
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