Bitcoin is back — but can the comeback last?

(CNN) – Bitcoin, which recently celebrated its eleventh anniversary, has surged this year. Prices have more than doubled to around $8,500 in 2019.

Bitcoin has enjoyed a nice rally in recent weeks as well, even as skepticism about Facebook and and its Libra cryptocurrency mounts in Washington and Europe.

It appears that bitcoin fans are not worried about what will happen to Libra. The mere fact that Facebook has shown such interest in cryptocurencies is being viewed as validation for bitcoin and other forms of digital payments.

The prices of leading rival cryptocurrencies to bitcoin, such as ethereum, litecoin and EOS have all rallied this year as well.

So is the bitcoin comeback for real? Investors can be forgiven if they are more than a bit skeptical. Bitcoin and other cryprtos have staged monstrous rallies before — only to have them quickly go poof.

What’s more, bitcoin is still well below the all-time high of nearly $20,000 that it hit in December 2017.

But the recent spike in bitcoin just might be legit this time. There is mounting evidence that bitcoin adoption is growing rapidly. Mobile payments company Square (Twitter CEO Jack Dorsey’s other company) recently reported a surge in demand for bitcoin purchases on its Cash App, for example.

China is taking more steps to embrace bitcoin as well. Chinese president Xi Jinping recently made bullish comments about the blockchain technology that acts as a ledger for bitcoin transactions, calling blockchain an “important breakthrough.”

Nearly half of respondents in a recent survey said they thought bitcoin would be the best performing asset over the next 12 months, according to a poll of 350 finance executives conducted by blockchain research firm Chainalysis in late September. Only a third of those surveyed said stocks would be the top asset to own and a small minority said bonds or housing would outperform equities and bitcoin.

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