Bitcoin reached the mark of $ 10,000 late Friday for the first time in over a year
Cryptocurrency is known for its volatile price paths. Between the end of 2016 and 2018, investors saw that bitcoin increased from just a few hundred dollars to over $ 20,000 before they dropped back.
Bitcoin owes its latest ascent to a weaker dollar and Facebook's new digital currency, Libra.
Digital currencies also got a nod this week from Fed Mayor Jerome Powell and Bank of England Governor Mark Carney, who said central banks should look at bitcoin and other open-minded crytpocurencies.
It could mean further regulation down the road that will Probably lead to reduced volatility for bitcoin and more legitimacy in global financial markets.
But if Libra catches on, it can actually hurt bitcoin instead of helping it. Consumers may prefer a so-called stable coin like Libra instead of bitcoin and other cryptographic curves that have been subject to dramatic price fluctuations.
Some worry that the dramatic tip of bitcoin, which has now risen nearly 170% from just under $ 3,700 by the end of 2018, will ultimately scare away long-term investors.
"The bitcoin appellation is still too limited for the average investor. It's very risky and the volatility has been extreme," said Paul Markham, global equity portfolio manager at Newton Investment Management.
