BITCOIN HAS REACHED yet another financial milestone, surpassing $10,000 (around £7,500) for the first time ever.
The currency has experienced a great deal of growth in the last few months. Just a few days ago, it reached the $9,000 mark, despite being worth less than $1,000 at the start of 2017.
Bitcoin is one of the world’s most popular digital currencies, offering a decentralised system where there isn’t a central repository or responsible administrator.
As well as its trading price constantly growing, the total value of the currency has already passed $167bn. Many experts are saying 2017 is a golden age for the currency.
According to reports, the currency grew by almost 9 per cent overnight, reaching a total of $10,831.75.
First introduced in 2009, Bitcoin has received a mixed reaction from industry spectators. It’s prolifically used by criminals looking to transfer money under the noses of authorities.
However, despite the growth, there are some people who believe that the growth of Bitcoin is merely a bubble, and JP Morgan chief Jamie Dimon is one of high-profile names who have slammed the currency in recent times.
The exact reason for its growth is unknown, although there are few contributing factors. In particular, enthusiasm for the currency grew when American derivatives marketplace specialist CME Group announced plans to launch a Bitcoin futures product.
And there’s also the fact that industry specialists decided to kill the controversial Segwit2x plan, which would have changed the way the technology is managed. If it had come into force, there were fears that the industry could have been left divided.
Joe Pindar, director of product strategy of Gemalto, is worried about the future of the cryptocurrency. He said it is at risk of a bubble burst, like the dot-com bubble in 1999.
“With so many new cryptocurrencies being launched on almost a daily basis, there is no doubt that the demand is there, with Bitcoin the prime example,” he said.
“There is a good chance of Bitcoin reaching higher levels, but the truth is the cryptocurrency bubble is going to burst at some point. However like all bubbles, predicting the exact time it will go pop is extremely hard.
He added: “It reminds me a lot of the dot-com bubble in 1999, which companies like Amazon and Google survived and became essential to our daily lives.
“Similarly with the convenience and international nature that Bitcoin provides, once the hype has been removed, we will be left with the serious players, and the true value will be established.
“My advice is not to jump in head first, but don’t expect cryptocurrencies like Bitcoin just to be an overnight sensation.” µ
Source : Inquirer