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The Bitcoin trade: Higher, Higher, Higher!

April 3, 2013: 1:46 PM ET

The price of the cybercurrency Bitcoin has been skyrocketing in recent weeks.

Bitcoin -- the 4-year-old cryptic online currency -- is suddenly the hottest investment in the world. What other currency, stock, bond or derivative has seen its value spike 326% in the past month and 67% in less than a week?

On Wednesday, one bitcoin traded for $147. Just two and a half years ago, a bitcoin was valued at 5 cents.

The banking crisis in Cyprus certainly contributed to the interest in a currency that's disconnected from all central banks, and is instead "minted" by a complicated algorithm spewed from more than 20,000 computers. But the intrigue surrounding these coins and their value has continued to rise.

StockTwits traders have started to debate whether bitcoin values are in bubble territory or whether demand can keep prices soaring. But one thing that's changed: few are questioning whether this currency is here to stay.

$BCOIN First they ignore you, then they ridicule you, then they fight you, then you win.

Many investors have been scrambling to simply understand what a bitcoin is and how to buy it.

Good intro to $BCOIN on Quora by Paul Bohm. A glimpse into the potential use of decentralizing technologies. Bullish

The bigger question for StockTwits traders: Is bitcoin in bubble territory?

OK this is pure bubble insanity. Not sure how high it goes but calling it, Bitcoin back to 40-50 once this pops $BCOIN

So is the alternative.

I'm Raising My Bitcoin Price Target To $400 - Blodget $BCOIN

Once burned, twice shy...or something like that.

Henry Blodget, a former tech stock analyst, is taking the middle road when it comes to bitcoin. Yes, it could be a bubble, but it could also rise to $400, $1000, $5000.

Blodget compares bitcoin to the case he made about Amazon's value during the dotcom bubble. Of course, there's no tangible way to value a bitcoin aside from what someone else believes it is worth.

"The odds bitcoin speculators are looking at are similar to the odds early Internet speculators were looking at: The most you can lose is 100% of your bet. The most you can make, meanwhile, is theoretically unlimited," Blodget wrote.

Blodget, the current CEO of Business Insider, was famously banned from the securities industry for life back in 2003 after writing misleading reports on Internet stocks.

Could Blodget be earning fees for talking up bitcoins? Probably not, but that's the beauty and danger of the bitcoin marketplace. No one knows exactly who mints them or who is controlling the supply.

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Maureen Farrell
Maureen Farrell
Staff writer, CNNMoney

Maureen Farrell is a staff writer at CNNMoney and covers Wall Street, banking, mergers and the stock and bond markets. Prior to joining CNNMoney, she covered venture capital and entrepreneurs for Forbes, and mergers and bankruptcy for Mergermarket and Debtwire, both divisions of the Financial Times.

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