Cryptocurrencies: Fad or the future?

Bitcoin and other cryptocurrencies have been back in the news this week after the endorsement of SpaceX and Tesla boss Elon Musk. His comments prompted the price of bitcoin to rise sharply. It’s thought that a perfect storm of inflationary coronavirus stimulus spending by governments, plus eroding trust in financial markets is pushing investors towards the volatile investments. Hundreds of so called ‘alt-coins’ have followed Bitcoin into the highly unregulated cryptocurrency marketplace and worthless coins are being marketed on social media with prices rocketing hundreds of percentage points in minutes. It all has institutional investors wondering whether to dip their toes in for fear of missing out - and regulators scratching their heads about what to do next. New US treasury secretary Janet Yellen says cryptocurrencies are of ‘particular concern’ and the Indian government is now seeking to prohibit private cryptocurrencies altogether. So what are they and how have they evolved since the early days of Bitcoin a decade ago? Ritula Shah and a panel of guests discuss cryptocurrencies and what should be done about them.