Other virtual currencies saw sudden price jumps, too: Ether and XRP both rose around 7 percent.
Before you start buying cryptocurrency, though, consider the advice of Peter Mallouk, certified financial planner and president of wealth management firm Creative Planning: “What we’re going to see, most likely, is, we’re going to see cryptocurrencies collapse.”
There are so many types of virtual currencies — like litecoin, ethereum, ripple and, of course, bitcoin — that “there’s no way that even a fraction of them can survive,” Mallouk, who is also author of “The 5 Mistakes Every Investor Makes and How to Avoid Them,” tells CNBC Make It.
“Is it possible that maybe one or two will work out in the future? Sure it is.” But, he says, “in the meantime,” if you buy cryptocurrency, “you get no income. It’s not a real investment. It’s speculation.”
Instead, invest in “things that are going to pay you to own them,” he says. “Own real estate, where you’re collecting rent. Own stocks, where you’re collecting dividends. Own bonds, where you’re collecting yield.”