My coworker, C, told me that he intends to buy several-hundred-dollars-worth of Bitcoins, an all-digital currency not tied to any central bank. I don’t quite understand how it works. I don’t know whether to be excited or scared.
The value of Bitcoin has fluctuated a lot: It reached over $200 in early April, but is now in the $60 range. Speculators cashed-out. My coworker explained to me that he intends to be a speculator, too. If he buys 10.0 Bitcoins at today’s $66 price (total paid: $660), and the value goes back up to $200, his 10.0 Bitcoins will be worth $2,000+.
Value in U.S. Dollars of 1.00 Bitcoin, March and April 2013
Value in USD of 1.00 Bitcoin, 2009 to Mid-April 2013