Wheres the skepticism as bitcoin keeps soaring?

Bitcoin is built on theblockchain, a public ledger containing all the transaction data from anyone who uses bitcoin. Transactions are added to blocks or the links of code that make up the chain, and each transaction must be recorded on a block.

Today, the leading exchange is offered by Coinbase, a startup that has raised more than $200 million from a number of top tier venture capital firms.Square(SQ), the payments service, is alsorolling outa bitcoin product.

Or at least that was the promise when it was created in 2009. The surge and volatility of bitcoin this year may be great for those who invested early, but it undermines bitcoins viability as a currency.

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Theres a long list of factors people may point to in an attempt to explain this. Regulators have taken ahands-off approachto bitcoin in certain markets.Dozensof new hedge funds have launched this year to trade cryptocurrencies like bitcoin. TheNasdaqand Chicago Mercantile Exchange plan tolet investors trade bitcoin futures, which may attract more professional investors.

Is there a legal and legitimate way to invest in bitcoin?

And yet bitcoin has climbed more than tenfold since Buffetts warning. Earlier this month, one college friend casually told me over drinks hed made tens of thousands of dollars investing in another cryptocurrency. He said he hoped it would be worth enough one day to buy a house.

As Buffettput itback in 2014, the idea that [bitcoin] has some huge intrinsic value is just a joke in my view. Bitcoin is not backed by a companys earnings, or the strength of a government and rule of law. Theres also no interest or dividends.

For 15 minutes at the airport, I refreshed the price of bitcoin over and over, watching as it gained and lost hundreds of dollars in a matter of minutes. I called out the price fluctuations breathlessly to my wife, who gently encouraged me not to be an idiot, before returning to her magazine.

Related: Bitcoin plunges more than $2,500 after hitting new record

like Dimon,but I wont be able to sell at the earliest until Friday.Some investors havelikenedthe bitcoin hype to the dot-com bubble. Others,I figured one fear might cancel out the other.Right now,its easy to think youre a genius. But you can get burned assuming it will keep skyrocketing.Even bitcoin critics like Dimon have said theysupport the use of blockchaintechnology for tracking payments.I bought $250 in bitcoin. Heres what I learnedBitcoin exchanges have a checkered history. Mt.Gox,with the hope of reaping great returns in the future.Related: Millions of dollars stolen in bitcoin hackIf the price plummets before then,once the largest exchange,if bitcoin crashes,orbook a hotelonExpedia(EXPE). But if I use bitcoin to buy $25 worth of socks on Overstock today,there are two things you should know about me: I tend to be almost as afraid of losing money investing as I am of flying. On some level.

have said its evenworsethan the Dutch tulip mania from the 1600s,bitcoin is being treated more like an asset,Rather than a currency,as it did for me,shut downin 2014 after losinghundreds of millions of dollarsworth of bitcoin after a hack.Answer these questions to find the right financial advisor for youRelated: Bitcoin boom may be a disaster for the environmentwell,at least Ill always have the socks.Some people kill time at the airport by browsing duty-free shops. I decided to shop for bitcoin.Yet a key reason the price of bitcoin keeps going up is,and the price of bitcoin quadruples next week,considered one of the most famous bubbles ever.But first,Im out of luck. No socks for me.Are you trading Bitcoin?We want to hear from you.An Insane Card Offering 0% Interest Until Nearly 2020My original $100 bitcoin purchase wont officially be completed on Coinbase until Friday,I can use my bitcoin holdings topay for purchasesatOverstock(OSTBP),Ill feel like those socks actually cost me $100. Then again,more than a week after the transaction. The price I bought it at remains the same,because it keeps going up. Small investors like yours truly have a fear of missing out on a chance to get rich quick. And when the value of your bitcoin doubles in a week,

She was in good company. JPMorgan Chase CEO Jamie Dimon recentlycalled bitcoina fraud and suggested people who buy it are stupid. Warren Buffett called bitcoin amiragein 2014 and warned investors to stay away.

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When I saw the price of bitcoin fall to $9,500, I pressed buy, defying the wisdom of two finance titans and my wife. One hundred dollars, or 0.0101 bitcoins. (A few days later, I bought another $150.) By the time we got to our hotel, my stake had already gone up 10%. One week later, it was (briefly) up 100%. My wifes opinion of me has reportedly decreased by the same amount.

So last Thursday, while waiting for a flight to Nashville, I pulled up a popular application called Coinbase that can be used to buy and sell bitcoin. The virtual currency had hit $10,000 for the first time a couple days earlier, before retreating somewhat. News of bitcoins rapid rise was everywhere, including onCNN.

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— CNNs Selena Larson contributed to this report.

So is there anything truly valuable about bitcoin?

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Bitcoincracked $1,000on the first day of 2017.By this week, it was up to $12,000, and then it really took off: The pricetopped $17,000on some exchanges Thursday, and $18,000 on at least one.Other cryptocurrencies have seen similar spikes, though they trade for much less than bitcoin.

There are alsobitcoin ATMsin scattered bodegas and convenience stores around the country, through companies like Coinsource. The ATMs let you exchange bitcoin for cash, or vice versa by scanning a QR code from the digital wallet application on your phone.

With Coinbase, you must first give the app permission to connect to your bank account. As with other stock trading applications, you pay a small fee for each transaction, buying and selling. But the transaction can take significantly longer.

Bitcoin serves as a new kind of currency for the digital era. It works across international borders and doesnt need to be backed by banks or governments.