Bitcoin: how worried/excited should we be?

Claims that cryptocurrencies will replace established fiat currencies are rubbish; our view is that Bitcoin is a bubble. Indeed, the latest price falls suggest that the bubble is bursting – although with prices still ten times higher than a year ago, they have a lot further to fall yet. At least the economic fall-out from this should be small. And some long-run good will come of the blockchain technology underpinning the spread of cryptocurrencies, although it remains to be seen how big its effects will actually be.