Bank of America Corp (BAC), Wells Fargo & Co (WFC): Bitcoin’s History of Crushing Speculators

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Will Bitcoin succeed or fail?
Proponents of Bitcoin will rightly point out that over time, the prevailing trend of the cybercurrency’s price has been upward. Even looking back to before the latest speculative fever took over, Bitcoin’s price in the $10 to $15 range marked a major recovery from its 2011 losses. Even if prices crash, they may not erase all of Bitcoin’s long-term gains.

Bitcoin’s long-term success, however, will have little comfort for those who’ve paid $100 to $150 or more for Bitcoin in recent days. Bank of America Corp (NYSE:BAC), Wells Fargo & Co (NYSE:WFC), and numerous other big U.S. banks may have raised the ire of millions of Americans during the financial crisis for their mortgage-lending excesses and may not pay much interest to their depositors, but what they do offer is a federally insured vehicle to protect your savings. Before you abandon traditional bank accounts to become a Bitcoin buyer, be sure you understand just how much people just like you suffered during the last Bitcoin bubble.

The article Bitcoin’s History of Crushing Speculators originally appeared on Fool.com.

Fool contributor Dan Caplinger owns warrants on Bank of America and Wells Fargo. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Wells Fargo. The Motley Fool owns shares of Bank of America and Wells Fargo.

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