As bitcoin has emerged from the underground world of nerds and criminals to become a mainstream investment, the risk of hacks and scandals has also blossomed. What's a government to do? The WSJ's Steven Russolillo travels the world (sort of) to see how regulators are responding to the remarkable rise of cryptocurrencies. Video: Sharon Shi and Crystal TaiFederal Reserve Bank of New York President William Dudley warned that investing in privately issued digital money such as bitcoin could end in big financial losses for those involved. “There is a bit of a, I would say, speculative mania around cryptocurrencies in terms of their valuations, which I view as pretty dangerous, because I don’t really see what the actual true underlying value of some of these cryptocurrencies actually is in practice,” Mr. Dudley said Thursday in New York.

Source: Wall Street Journal February 22, 2018 16:55 UTC