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Photos of the signage in front of a three-storey office on Spadina Ave. in Toronto.
Photos of the signage in front of a three-storey office on Spadina Ave. in Toronto.
(PETER POWER/THE GLOBE AND MAIL)

Bursting the bitcoin bubble

As a Serious Economist, I had been happily ignoring the recent bitcoin frenzy, safe in the smug knowledge shared by all Serious Economists that the surge in bitcoin value is a bubble that will soon pop.

Recently, however, my own protective bubble was shattered as I was walking through a large American airport and I bumped into an old friend. This friend (let’s protect the innocent and call him “Eric”) is very mathematically inclined. I consider him a tremendously smart fellow. While we were catching up, Eric told me that he is going to make a killing on his bitcoin holdings. He is Canadian and hence too humble to have told me how many coins he had already accumulated, but I gather he has quite a collection.