Ms. Longson's husband, Tom, has been buying and selling the currency for the past year.

WSJ: Bitcoin Investors Hang On for the Ride

Longson says she was tempted to convert her Bitcoin over to USD then, but she and her husband decided to keep their Bitcoin bank.

FORBES: Living On Bitcoin For A Week: Bitcoiners Are The New Vegans

But Jennifer Longson, who began accepting bitcoins at her San Francisco cupcake bakery in October, considers the volatility to be no different from the fluctuations she sees in the price of her baking ingredients.

WSJ: Bitcoin Investors Hang On for the Ride