Ross Professor Warns: Be Aware of Bitcoin’s Unique Risk
Writing in The Hill, Professor Andrew Wu explains what’s driving bitcoin’s prices and why investors should use caution.
The rise of bitcoin prices has some investors anxious to hop onto the cryptocurrency train, but Michigan Ross Professor Andrew Wu advises caution.
Writing in The Hill, Wu explains the technology behind bitcoin and why that creates a very unique risk for investors. He also says speculative psychology is driving the price more than anything.
“Compared to equity investing, where shareholders get to vote on corporate matters, bitcoin investors really have no say on how it's ‘run:’ All the power is concentrated among a few large mining pools and exchanges,” he writes.
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