The value of the popular cryptocurrency bitcoin has finally crossed the milestone of $10,000 (£7,493) after nine years since it was launched. This monumental leap came within days after it surpassed the $9,000 benchmark. Earlier this year, this cryptocurrency was trading just below $1,000.
Cryptocurrency experts have mixed opinions about this surge in value. Some of the virtual currency experts still believe that this new benchmark does not mark the peak. They believe that bitcoins still have the potential to soar higher and mark new heights. Some with a contrasting view say its core could burst anytime soon as it is not tangible and represents a speculative bubble.
Nonetheless, bitcoins are trading worldwide with the exception of a few countries according to their legislature. This virtual currency has traded over $167bn since its existence. It is the first virtual currency to ever reach such huge market cap volume.
Why all the rush about this cryptocurrency.
Digital currency is the future of currency and worldwide payment channels. It is the first and widely accepted decentralized digital currency, that is, a currency without a single administrator or central repository.
This virtual currency was worth only about $12 twelve years ago. It first reached a landmark of $1,000 in 2013 but took a downward turn and dipped in value briefly. This was followed by a volatile surge; in rising till it hit a new record.
Surprisingly, this new surge came weeks after several attempts to limit its use were carried out by several financial regulators. Financial experts believe that one major reason for the upturn could result from the announcement by the CME Group. This US-based company announced its plan to launch a bitcoin futures product in the last quarter of 2017. This new could have triggered the rise in value.
Other news that may have encouraged the fostering of bitcoins could be the failed plan known as Segwit2x. This was a very controversial plan to alter blockchain, which is a bitcoin based technology. This proposed plan was to help it achieve a higher volume of transaction. Since it came to no avail, experts believe it boosted the confidence of bitcoins users.
Bitcoin isn’t the only cryptocurrency experiencing this boom in value. Ethereum, which was worth $10 early in 2017 is now $480, all in one year.
Despite this rise in fortunes, financial advisers and investors all have mixed views about cryptocurrency. Some are trading and trying to make as much profit as possible from this virtual currency market. While some others advice strongly against it since they don’t have the means to predict whether it will continue to rise or suddenly crash.
Finally, as bitcoin continues to soar, the choices are largely dependent on individuals. We will keep track on the progress of this new wave of currencies.
Executive Editor at Best in Australia. Mike has spent over a decade covering news related to business leaders and entrepreneurs around Australia and across the world.