Silk Road

Bitcoin's price hit $5,000 last week. It's still a dumb investment

Bitcoin's price hit $5,000 last week. It's still a dumb investment

Late last week, I noticed a spike in what we might think of as a certain financial index. It wasn’t the trading in a financial instrument per se, but in the online traffic in a column I had written in December 2013. The column examined the recent crash in the price of bitcoins, which had plummeted to $600 from $1,200 in just two days. The headline read:

“The bitcoin crash of 2013: Don’t you feel silly now?”

What was causing the spike in readership of that piece more than three years later was that the price of bitcoins was surging toward $5,000, a point it breached during the day on Friday. A few bitcoin true believers had dug out that old story and were,...

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