Bitcoin has been luring some investors with potentially huge rewards—and scaring others away with equally big risks. Should it be on your investment shopping list on Black Friday?
The cryptocurrency can certainly be volatile. Earlier this month, for example, it plummeted 25% over five days after concerns grew that a new currency called Bitcoin Cash, which promises to speed up transactions, would make Bitcoin itself a less attractive payment option.
That fear didn’t last long. Over a subsequent two-day span, investor sentiment reversed and the price jumped up 18% from its lows; by Thanksgiving, Bitcoin had soared to new highs.
Not many investments engender the differences in opinion that Bitcoin and other cryptocurrencies create. It’s that volatility, and uncertainty about the technology’s long-term viability, that breeds whirlwind days. The currency has turned evangelists and hackers into paper millionaires overnight, while others see it as a fad, doomed to fade as countries add regulations onto what’s currently a stateless, bankless Wild West of payment tools.