02 4 / 2012

Banking and payment expert Simon Lelieveldt believes they are living on borrowed time. “There is always a power base underlying a currency,” he said, speaking at the Digital Money Forum in London in March. “Bitcoin is not going to fly because there is no central bank or power base. It’s doomed to fail.”

"The system we would bring in would be backed by a fund," he told Reuters. "Bitcoin may work for the small group of people that believe in its value, but that could change very suddenly."

Without that backing or a similar power base, Bitcoin lives with the ever-present risk of failure.

"To be clear, I would say the same about the euro," said payment expert Lelieveldt.