The 12 worst investments of 2014, #1: bitcoin
Bitcoin was the worst performing investment of 2014. From a January high of around $1,000, it fell consistently over the year, losing 52% of its value.
Performance in 2014: -52%
See all 12of 2014's worst investments here
What happened?
Why did ittank? The continuing government clampdown on sites selling illicit services (where anonymous bitcoins are often used as payment) didn't help, said Extreme Tech.com. But, in reality, illicit trades made up a small proportion of Bitcoin transactions.
The bitcoin crisis' was a crisis of confidence. Over 850,000 bitcoins, worth a total of $450m, were stolen from Mt Gox, the largest bitcoin exchange site, and an enormous amount of bitcoin's value wiped. The collapse shook faith in the currency's security, its real selling point.