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.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Who are the losers?
own around 1% of the entire bitcoin market
Who are the winners?
What have we learned?
-
PayPoint: A promising stock for income-seekersPayPoint, a household name across Britain, is moving away from its traditional roots toward a digital future. Investors after a steady income should buy in
-
Invest in forestry: a tax-efficient way to grow your wealthRecord sums are pouring into forestry funds. It makes sense to join the rush, says David Prosser
