UIndy Financial Expert Questions Value of Bitcoin
An Indiana financial expert says bitcoin really isn't worth the value it's touted to be.
This follows word that the price of the internet currency is down more than 50% after falling from a November high of $1200 to $575 Wednesday. This comes after China cracked down on the currency.
University of Indianapolis Professor Dr. Matt Will says bitcoin is merely a method of transacting business. It allows consumers to buy and sell goods online, like the dollar, if it's accepted. Will says the total value of bitcoin might have been $7 billion compared to US currency which is $10 trillion.
Will says some online retailers might accept it, but that remains unlikely. Will says the dollar has the backing of the U.S. government and economy and other some other world currencies are backed by gold. However, he says bitcoin has no real support. Ultimately, he says bitcoin is basically the product of speculators so consumers should be very careful about acquiring or using it.