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Illustration: Lazaro Gamio / Axios

Bitcoin is up about 1,700% since the start of the year. Some attribute the surge to ordinary, if enthusiastic, investment, along with the forces of supply and demand. Others say it's a bubble, and that it will ultimately burst. Joe Borg, president of the North American Securities Administrators Association, a grouping of state securities officials, suggests it's the latter. "This is a casino," he tells Axios, "not an investment."

The bottom line: Borg, who is also director of the Alabama Securities Commission, says he could be wrong and that those who say bitcoin is just "another type of investment" will be proven correct. But he sees worrying signs of a classic investment mania.

Among the signs:

  • People have told him they have taken out home equity lines of credit to buy bitcoin.
  • Those doing so, he said, are mostly millennials and young baby boomers.
  • "They seem to think anything electronic is a game," Borg said. "There are entrepreneurs who run Facebook, and they put this in the same category."

Thought bubble: If bitcoin collapses, which has been the normal course in big, sudden investment manias, the price is highly unlikely to go to zero, meaning a lot of people will still be in the money. But lots of people will lose, too, including perhaps some who have taken out those home equity lines of credit.

That there is a fever is indisputable. It is global, and especially heavy in Asia. Ordinary South Koreans are the most aggressive bitcoin investors, in addition to Hong Kong Chinese, Japanese and Vietnamese, report the WSJ's Steven Russolillo and Eun-Young Jeong. Together, they account for almost 80% of global bitcoin trading. Other reminders of fevers past:

  • Most of these Asians buying bitcoin are the general public, not professional traders.
  • At the point last week when bitcoin went above $17,000, it was almost $25,000 in South Korea, almost 50% higher, the WSJ said. In other words, the trade is chaotic to the point of irrationality.
  • At the FT, Izabella Kaminska writes today that even central banks are "getting drunk on the collective cryptocurrency/blockchain Kool-Aid."

A point that increasing numbers of observers are making is that bitcoin is only an investment, with no other real-life, large-scale utility, at least at present: bitcoin and other cryptocurrencies are too slow and cumbersome to serve as money, their original purpose.

  • In a speech today in Sydney, Phillip Lowe, the governor of the Reserve Bank of Australia, makes the point: "The current fascination with these currencies feels more like a speculative mania than it has to do with their use as an efficient and convenient form of electronic payment."

Go deeper

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Florida Gov. Ron DeSantis (R) said Friday he will issue an executive order "very soon" barring local school districts from requiring students to wear masks when they return to school next month, NBC News reports.

Why it matters: The spread of the Delta variant has led to a spike in new infections across the U.S., triggering another round of debate about COVID guidelines in schools.

Trump's tax returns must be released to Congress, DOJ says

President Trump at the end of a rally to support Republican Senate candidates at Valdosta Regional Airport in Valdosta, Georgia on December 5, 2020. Photo: Andrew Caballero-Reynolds/AFP

The Treasury Department "must" release former President Trump's tax returns to the House Ways and Means Committee, the Department of Justice said in a memo Friday.

The big picture: The DOJ memo comes after a long dispute between the committee, which first sought to obtain the former president's returns two years ago, and Trump, who fought to keep his finances private.

CDC: Delta variant may cause mild COVID among fully vaccinated people

A storefront sign in Los Angeles reminds people masks are for everyone. Photo: Frederic J. Brown/AFP via Getty Images

About 74% of 469 COVID-19 cases associated with large gatherings held in Barnstable County, Mass., from July 3 to 17 were among fully vaccinated people, according to data released Friday from the Centers for Disease Control and Prevention.

Why it matters: The data bolsters emerging evidence that vaccinated people have high viral loads and may transmit the Delta variant as easily as those who are unvaccinated.