Have you ever wished that you got in on a Ponzi scheme at just the right moment? If so, we may have some bitcoins to sell you.

In case you haven’t heard, Bitcoin is the brave new world of global currency in the digital age. It is a peer-to-peer payment system that takes place via an encrypted public log. The owner of bitcoins is registered on this log and can make transactions with merchants who accept bitcoins by exchanging what are essentially credits with one another. The administrators of the log (known as the “blockchain”) are known as “miners” and they are rewarded in bitcoin for their systems management work.

Although bitcoin may be exchanged for dollars at participating exchanges, it is not yet considered an official currency by the U.S. government. As of this writing, 1 bitcoin = $728.65. And its value continues to rise.

Since the value of bitcoin is boiling over, it is attracting a great deal of interest among investors and high-tier property sellers. That’s right, one gentleman has recently listed his 4-bedroom, ranch style home in the Hamptons for $799,000 — payable in US dollars or bitcoin. You can also jump into China’s housing bubble with bitcoin if you wish to double down on your real estate speculation.

As with any investment, some due diligence is in order before you start stockpiling the newfangled currency. Paul Krugman recently called it “evil.” While we may not moralize so dramatically about the concept, Bitcoin’s faults are pretty glaring.

Bitcoin is undeniably built on a deflationary economic model. Once 21 million bitcoins are “mined”, production stops — this is a condition built into the code, instituted by the creator of Bitcoin.

While Bitcoin may be an intriguing and efficient medium of exchange, problems with the currency crop up when it is considered as a store of value. The dollar, which is still the world’s premiere safe haven currency, is backed by the full faith and credit of the United States government. If the value of the dollar goes into a tailspin, the Federal Reserve will buy them back. Even gold (a terrible standard) holds economic value stemming from its aesthetic uses.

Bitcoin, on the other hand, attempts to create a store of value by placing a finite ceiling on the creation of the currency. In other words, Bitcoin’s value comes from its built-in scarcity. Since the amount of bitcoins in circulation is inherently limited, its value will continue to appreciate as the initial fever to acquire the currency runs hot. Its value appears to grow, which creates a deflationary spiral as users hoard the currency rather than spend it, perpetually waiting for it to gain more value.

Basically, it’s a speculative game of hot potato. The idea here is to get the currency while there is still demand for it, and then exchange it for dollars or assets (real estate) before its value falls. Whoever is the last in will be left holding lines of worthless code. The smart ones will have converted their funny money to real cash long ago.

So, what do we think about purchasing real estate with bitcoins? If you own bitcoins now, convert it into something that acts as a reasonable store of value as quickly as possible. Real estate is a good idea…that’s if can you find a seller who will take your bitcoins.

Otherwise, save them for the doomsday-preaching, anti-government gold bugs. They’ll have some fun with the fantasy “independent” currency while the dollar marches on by fiat.