“What do you think of bitcoin?” my friend asked in January.

It’s the question everyone asked back then and are still asking today. It’s not surprising.

The price of bitcoin soared from $6,500 in mid-November 2017 to more than $17,400 in mid-December – a gain of more than 165% in just one month. Since then, it’s made a round trip back below $6,500.

I know several people, including The Oxford Income Letter Managing Editor Rachel Gearhart, who have made five times their money on a small investment.

So in January, with bitcoin trading around $17,000, I told my friend what I thought. “It’s a mania right now.”

He replied, “But it can go higher, right?”

Can It Go Higher?

Today, with the price of bitcoin about 65% lower than when I had that first conversation, my opinion about its direction remains the same. It absolutely can go higher. It also can go lower (thanks for the prophecy, Nostradamus).

There are many experts, including Pillar One Advisor and co-founder of Early Investing LLC Adam Sharp, who believe bitcoin will eventually hit $100,000.

They expect other cryptocurrencies to rise as well.

You may be wondering why I’m even talking about bitcoin. Very few cryptocurrencies pay dividends or generate any income.

I’m writing about it today because so many of you are interested, have requested my opinion and want to know how bitcoin fits into your overall portfolio.

As I mentioned to my friend, it was a mania. Many have equated it to the 17th-century tulip bubble in the Netherlands.

Nearly 400 years ago, people bid up the prices of tulips to ridiculous levels and flipped them like day traders.

Bitcoin shouldn’t be compared to tulip mania. A more accurate parallel is the dot-com boom.

After that bubble burst, there were still quality companies left that went on to become giant successes – like Amazon (Nasdaq: AMZN) and eBay (Nasdaq: EBAY).