I READ your letter from David Cairns with a sense of relief as my instinctive doubts about bitcoins were confirmed by his logical analysis (Letters, September 18). I have struggled to understand the underlying value of such a currency and it is reassuring to discover that there is none.

It reminds me of my confusion during the dotcom bubble as high-tech companies were created without clear business plans and yet soared in share price as investors piled in. At one stage I wondered if I had lost the plot and was hopelessly out of date with my understanding of business economics.

Unfortunately for those who did invest their cash in something they didn’t understand, the boom was followed by the inevitable crash.

Of course all currencies are only made viable by the confidence their users have in them, usually based on a government with tax-raising powers and sensible economic policies.

That is well within the reach of an independent Scotland, without the need for a fanciful and risky high-tech currency.
Peter Craigie
Edinburgh