The price of bitcoin fluctuated wildly since its inception, going through various cycles of appreciation, which have been referred to by some as bubbles. In 2011 the value of one bitcoin rapidly rose from about US$0.30 to US$32 before returning to US$2. In the latter half of 2012 and during the 2012-2013 Cypriot Financial Crisis, the bitcoin price began to rise reaching a first peak of US$266 on April 10, 2013 before crashing to around US$50.
Bitcoin has been in the news a lot. So I thought I'll weigh in. Bitcoin doesn't work well as money. Money exists to facilitate transactions. To serve that function well, its value should be steady and predictable. Bitcoin fails spectacularly on this count. From Wikpedia:
It's probably possible to build a cryptocurrency that's stable and viable as currency. Bitcoin just isn't it.
Author of Economics: The Remarkable Story of How the Economy Works