A new day, a new high for the digital currency bitcoin. On Thursday, the price of bitcoin gained more than 12 percent and traded above the $2,700 mark, implying it has doubled in price in the month of May alone.

But investors sitting on a profit should consider what Business Insider's CEO Henry Blodget is saying. Speaking as a guest on CNBC's "Squawk Alley" segment Thursday, Blodget said that bitcoin is a "perfect asset for a speculative bubble" since there is a finite supply coupled with zero intrinsic value.

"If anyone is persuading you that it should somehow be related to GDP or gold, put down the kool-aid and back away," Blodget emphasized.

100% Downside Isn't So Bad For Some

Blodget did acknowledge bitcoin has non-monetary value and use, and at the end of the day, there is demand for the digital currency since transaction volume has been increasing over years.

Blodget pointed out, however, there is technically nothing stopping bitcoin from soaring to $1 million. Naturally, there are some investors attracted to this prospect, since their downside is 100 percent of the investment but the upside could be 10x, 100x or even 1,000x.

"It's all possible, so I'll take that trade if I'm willing to lose 100 percent," he said.

Bottom line, Blodget isn't bullish on bitcoin but does acknowledge it has value for many people in moving money across borders. Yet at its core it is a "speculative asset."

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