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USM's Bert Smoluk tells WCSH-TV that Bitcoin may lose all value

USM Finance professor Bert Smoluk

Bitcoin investors beware, says the University of Southern Maine’s Bert Smoluk.

The professor of Finance told WCSH-TV that the cryptocurrency’s recent rise in value is a result of the Greater Fool Theory of Investing.

“You buy something because you think somebody is going to pay you a higher price in the future,” he told reporter Kristina Rex. “But you don't really know what the real value of it is.”

“US money has intrinsic value of the confidence you put in your banks and government to regulate it,” Smoluk said. “Without that third party, the value is lost.”