Given the current economic and financial conditions following the financial crisis of 20072008 and the aftermath of the 20082012 global recession, which is frequently referred to as the new normal, it is not surprising that many individual and institutional investors are interested in new alternative financial assets that could provide a higher level of returns. Since many investors are currently having a hard time finding financial assets that could yield a high level of returns, Bitcoin quickly gained the interest of investors as an alternative investment vehicle. Another quick alternative investment vehicle for generating income has been a Ponzi scheme, named after Charles Ponzi. What is the difference between Bitcoin as an investment vehicle and a Ponzi scheme? Is Bitcoin a speculative asset or not? Discuss.

Prescribed articles: Hong, K. (2017). Bitcoin as an alternative investment vehicle. Information Technology and Management, 18(4), 265-275.

Baur, D. G., Hong, K., & Lee, A. D. (2017). Bitcoin: Medium of exchange or speculative assets? Journal of International Financial Markets, Institutions and Money, 54, 177-189.

Nieman, A. (2015). A few South African cents' worth on Bitcoin. Potchefstroom Electronic Law Journal/Potchefstroomse Elektroniese Regsblad, 18(5), 1978-2010.