Bitcoin surged as much as 1,900 per cent last year before moving sharply lower again. But regulators, bankers and experienced traders have warned it is a toxic bubble that will eventually ruin many people involved. In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending. Bitcoins are generated by using an open-source computer program to solve complex math problems. This process is known as mining. Each Bitcoin has it’s own unique fingerprint and is defined by a public address and a private key – or strings of numbers and letters that give each a specific identity.
They are also characterized by their position in a public database of all Bitcoin transactions known as the blockchain. The blockchain is maintained by a distributed network of computers around the world. Because Bitcoins allow people to trade money without a third party getting involved, they have become popular with libertarians as well as technophiles, speculators — and criminals. Cryptocurrencies are the internet’s version of money – a unique pieces of digital property that can be transferred from one person to another, of which Bitcoin is one of the most well-known. When it happens or how or anything else, I don’t know’, he said in an interview with CNBC’s ‘Squawk Box’.