Bitcoin beats hryvnia, rouble as the worst currency

IT HAS been a bad year for the Russian rouble and a terrible 12 months for the Ukrainian hryvnia. But it has been a catastrophic 2014 for bitcoin, the virtual currency. While acknowledging that my currency forecasting prowess means that I am driving a desk rather than tanning on a beach, the gyrations do seem to offer some valuable lessons.

Bitcoin is second only to gold on the list of topics guaranteed to arouse the wrath of the Internet trolls. Yet relentless promotion cannot hide these facts: The digital currency peaked at a value of US$1,130 just over a year ago. Its plunge of more than 56 per cent in 2014 makes it the world's worst performing currency this year, according to Bloomberg, which tracks 175 foreign exchange values.

Bitcoin claims to provide Web buccaneers with a secure store of value that is free from the risk of government confiscation or interventionist devaluation, making it the currency of choice for old-fashioned money launderers and modern-day snake oil salesmen.