# Prof. David Yermack on Bitcoin as an investment

1 Faculty News April 7, 2014 ![CNC World logo](/sites/default/files/styles/246w/public/assets/images/con_031421.jpg?itok=hGe_2JA_)>

Excerpt from [CNC World](http://en.cncnews.cn/news/v_show/39729_Bankrupted_bitcoin_giant_faces_questions__.shtml) -- "I would not invest in Bitcoin if you're looking for a rate of return. I don't think you could consider it a good investment, especially for a poor household in a developing country that may not have much savings. Bitcoin is incredibly risky and there is no intrinsic value behind it. If you invest in a stock, there is a company paying dividends that supports the value of a stock. If you invest in a government bond, you have the government's promise to pay interest; with Bitcoin, all you really have is hope."

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