NEW YORK–The volatile value of bitcoin has been on full display this week after the cryptocurrency hit a new record of $11,000, and then plunged by more than $2,000—and then recovered again.
Overall, bitcoin values have been up by as much as 1,000% since the beginning of 2017.
Analysts have suggested that the spike in value in recent weeks has been due to a surge in purchases made by speculators, including some hedge funds and asset managers.
The drop this week was due to what the bitcoin exchanges said were technical glitches.
Bitcoin has been the subject of much speculation and misunderstanding within the credit union community even as some major companies have started to accept payment by bitcoin. The virtual "coins" aren't tied to any central bank, and are instead are "mined" by computers using complex algorithms.
The global market for bitcoin is approximately $190 billion, which remains a fraction of the investments made in other vehicles, such as stocks.