I am hooked on following the fortunes of Bitcoin. But it is a misanthropic interest; I am a sceptic. As the story unfolds, we will see more and more evidence of the perils of investing in a currency as an abstract idea.

The freezing of Bitcoin exchanges by hackers, most prominently Mt Gox exchange in Japan two weeks ago, is just the tip of the iceberg. A currency without a central bank must float in dangerous waters. Eventually, the so-called cryptocurrencies – electronic tokens that pass irretrievably from buyer to seller – will become extinct. But for now they serve a real public purpose as an instrument of reform.

Culturally, Bitcoin represents the stateless currency. Not surprisingly, central bankers – who owe their authority to the state – have reacted with suspicion. It is instructive to watch how they respond. Some seem insulted, others worry about the risks to investors, while the US sees savings for consumers.