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I don’t think I want to know about Bitcoin. Having said that I’m sure there are one or two real millionaires who did exceptionally well from this speculation who would tell me what a great investing opportunity I missed out on.

Personally I do not speculate and my definition there is a clear distinction between speculation and investment. Investment means long term, period.

The two money losing ventures that I heard about before I was even in my teens were the Tulip Bulb speculative boom of the 17th Century and the

South Sea Bubble, an 18th Century money making scheme run by a government supported company riddled with insider traders and crooks.

At least the last buyers of tulip bulbs had something real to look at or plant!

When one of my clients asked my advice about Bitcoin my reply went something like this – “Decide how much money you would bet on a chosen horse to win the Melbourne Cup knowing that you could lose the lot. If you are that way inclined by all means have a bet of that same amount of money and buy Bitcoin”.

I must admit that I don’t go to the races. My client would never put $1,000 on a horse to win any race, let alone the Melbourne Cup, but when he asked the question, $1,000 was not enough money to buy even one of these imaginary “coins”.