Bitcoin’s Hype Vanishes Just Like That: ‘We’re in the Boring Phase’

Daily trading volume is 70% lower than its most active days, and the virtual currency is fading from social-media feeds

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 Tai
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While vacationing with friends in Buenos Aires last month, Alex Beene, a Tennessee government worker, said the topic of cryptocurrencies briefly came up during a dinner conversation.

The 30-year-old from Nashville told them he had bought bitcoin and litecoin last fall but recently sold most of his holdings. The discussion quickly shifted to another subject.

“Months...