Should You Buy Bitcoin? Cryptocurrency Price Rebounds but Dangers Could Lie Ahead in 2018

Investors checking their phones for the latest bitcoin update may have done a double take Tuesday as the cryptocurrency rose 10 percent after having one of its worst weeks, but the token's highs and lows have some wondering whether it's time to jump back into to the bitcoin bubble.

The cryptocurrency hit $15,116.50 on Tuesday after the tokens fell Friday, losing a third of their value in 24 hours at $11,000.

Investors have seen the price of the token increase in 2017, from $1,000 earlier in the year before skyrocketing to $19,666 in December.

But experts are still unsure about future predictions for the tokens.

"I think we're going to see bitcoin hitting the $60,000 dollar mark, but I also think we're going to see bitcoin hitting the $5,000 dollar mark," Julian Hosp, a cryptocurrency entrepreneur, told CNBC. "The question is, though, Which one is it going to hit first?"

The dip in the currency last week had some wondering whether to jump on the bitcoin bandwagon while its prices were down, but experts have warned against buying into a currency with such volatility.

JPMorgan Chase CEO Jamie Dimon has called the currency a "fraud," and billionaire Warren Buffett said it was a "mirage," while officials overseas in China and Singapore are working to regulate the tokens. Singapore officials warned last week against the cryptocurrency, saying the increases were brought on by speculation and that the bubble could burst. Shmuel Hauser, the chairman of the Israel Securities Authority, said Monday that he would look into banning companies supported by cryptocurrencies from the Tel Aviv Stock Exchange.

Hosp told CNBC's Squawk Box that last week's bitcoin dip was a healthy sign for the cryptocurrency.

"This dip for us was very, very healthy, and some of us have used it to buy a little bit more because suddenly we had 40 to 45 percent discount to all-time highs," he said.

Some see Tuesday's 10 percent increase as a test for the currency.

"The most important question facing it is whether the recent price correction will prove to be what market participants refer to as 'healthy,'" Mohamed A. El-Erian wrote in a Bloomberg View column Tuesday. In other words, one that shakes out "excessive irrational exuberance, provides for the entry of institutional investors, encourages the development of market-deepening products, and widens and balances out the investor base and the product offering."

Should You Buy Bitcoin? Cryptocurrency Price Rebounds but Dangers Could Lie Ahead in 2018 | U.S.