Waiting for the ride to end

It may cause the crusty old traditionalist to splutter into his pink gin, but there’s little doubt that bitcoin has been the most banging investment of the year.

The cryptocurrency has done a perky 2,300% since January at the time of writing, though at the time of reading this may well have changed — the price goes up and down at a rate that would place it comfortably in the premier league of global rollercoasters.

Clearly there are some who would still feel safer if their currency were backed by something as substantial as the might and majesty of the US government, for example, rather than an obscure group of libertarians.

And the currency’s early prominence as an anonymous means of exchange in the murkiest corners of the dark Web may not do a great deal to inspire confidence.

Then there’s the suspicion that many of its loudest advocates appear to have been taking full advantage of the West Coast’s liberal attitude to marijuana, which doesn’t feature largely in the Warren Buffett guide to useful investment tools.

It’s clearly a huge crash waiting to happen, and the wobbly nature of the trading platforms when prices tumble and investors attempt to sell should be a giant red flag.

But there may still be a bit more juice to be made while the enthusiasm lasts — as long as you can find a greater fool to take it off your hands.

Hedge funds have started to pile in, and the appearance of leveraged CFDS move the risk level from ridiculous to totally nuts, but there’s no doubt it’s been quite a ride so far.

There may still be a bit more juice to be made from bitcoin while the enthusiasm lasts