Woo said that bitcoin's fair value -- assuming it becomes a major player in e-commerce and gains a significant store of value similar to that of silver -- is $1,300.
Still, Thursday's report lends credence to the currency, which has soared in value amid widespread speculation. Bitcoin was trading at $940 Friday on Mt. Gox, an online trading platform. That's down from a high of $1,155.
Chinese authorities, however, did not ban the currency. Individuals can continue using the currency at their own risk, the country's central bank said.