By Dan Weil
Bitcoin continues to swing. It recently was up almost 1%. It’s down 10% from 10 days ago and up 26% over the past three months.
Bitcoin rebounded a bit Monday, continuing its rollercoaster ride, after China’s crackdown on the cryptocurrency market last week caused the cryptocurrency to stumble.
Bitcoin recently traded at $43,634, up almost 1%. The cryptocurrency has fallen 10% from 10 days ago and is up 26% over the past three months.
On Friday, China’s central bank, the Peoples Bank of China, in cooperation with several other state agencies banned bitcoin transactions and mining.
On Monday, two bitcoin-related stocks slipped. They’re Coinbase (COIN) , the largest U.S. cryptocurrency exchange, off 0.5% at $230.50; and MicroStrategy (MSTR) – Get MicroStrategy Incorporated Class A Report, down 0.9% at $594. MicroStrategy is the data-analytics company that had bitcoin valued at $5.3 billion as of Sept. 14.
Square (SQ) – the payment-technology provider that’s another big bitcoin backer, saw its stock slip 1.2% to $259.37.
The debate as to what bitcoin really is continues to rage among bulls and bears.
Some bulls say bitcoin’s use as a medium of exchange in normal commercial transactions will grow.
Bears point out that few consumers and companies will want to use such an unstable currency to buy and sell goods and services.
Bitcoin bulls say the digital asset is a hedge against inflation and a store of value. Bears note that the only thing bitcoin has proved to be so far is a vehicle for speculation.
The bulls also maintain that the currency can protect investors against declines in other markets, like stocks. But the bears note that since bitcoin was created in 2009, no sustained drop in stocks has occurred to test that theory.
And on plenty of days, stocks and bitcoin have fallen in tandem.