An article in the Wall Street Journal in 2023 about bitcoin observed, “Crypto’s extreme price swings are risky for everyday investors.” The article also notes, “Some individual investors’ enduring enthusiasm for crypto stems in part from a sense that traditional routes to wealth are blocked off.”

a. Does the fact that bitcoin and other cryptocurrencies are not being widely used in the role of a medium of exchange have anything to do with the swings in the prices of cryptocurrencies? Briefly explain.

b. What is a “route to wealth”? What might be a traditional route to wealth?

c. Are there downsides to using investing in cryptocurrencies as a route to wealth? Briefly explain.