Bitcoin as a cryptocurrency has become very popular with a lot of people.
Bitcoin price jumped above $1000 in the first week of this year for the first time after 3 years.
Most of recent demand for bitcoins is coming from China.
This forced the Chinese Central Bank to crackdown on bitcoin exchanges.
This crackdown on bitcoin exchanges has driven the price down to $700.
Read this blog post in which I explain a few structural design flaws that are hampering the growth of bitcoins.
Bitcoin is an unregulated decentralized electronic currency.
As long as these design flaws are not removed, bitcoin price increase above $1000 is of no consequence.
However it would be difficult to remove these design flaws.
Most probably a new cryptocurrency with a better structural design might replace bitcoins.