The peer-to-peer virtual currency is up nearly 350 percent in the past two months, thanks largely to uncertainty in Europe’s banking community.

Steven Musil

Bitcoin’s value is up nearly 350 percent in the past two months (click for larger image).

(Credit: Bitcoincharts.com)

Forget gold. The hot investment during this time of economic uncertainty in Europe appears to be Bitcoin.

Earlier this month, the peer-to-peer virtual currency was trading at a record $40 for one Bitcoin, more than doubling its value since January, when it was languishing in the midteens. In the past three weeks, it has doubled again, trading as high as $95 today.

All told, it’s an increase of nearly 350 percent in the past two months, and much of it is because of the banking crisis in Cyprus.

Bitcoin “is clearly having a breakthrough moment here, and a deeply surprising one given its novelty and nascent infrastructure,” Nicholas Colas, chief market strategist at financial technology company ConvergEx Group, wrote in a recent research note.

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