THE steep rise in the value of Bitcoin has been followed by a fast and
crushing dive causing the virtual currency to plunge 20 per cent in
minutes.
But
as soon as bitcoin went through $US10,000, it surged past $US11,000,
only to plummet from those lofty levels. The cost of buying one bitcoin
as measured by the website Coindesk was hovering around $US9,800, and
was as low as $US9,300 on Wednesday afternoon. A price of one bitcoin
had been roughly $US1,000 at the beginning of the year.
The steep rise in the price of bitcoin and other virtual currencies this year has divided the financial community on their merits and whether — or when — the value might come crashing back down.
The CEO of JPMorgan Chase has called bitcoin a “fraud,” as it is not based on anything other than software code and is not backed by any monetary authority. Other executives, including International
Bitcoin was created about a decade ago as an alternative to government-issued currencies.Transactions allow anonymity, which has made it popular with people who want to keep their financial activity, and their identities, private.
A new market enjoys a boom when professional investors start entering the market. That’s followed by euphoria as others rush in to partake in the gains. Wilson says bitcoin could rise a lot further, but says it is merely a question of when, not if, the bubble bursts.
THE price of bitcoin surged through $US10,000
($13,200) on Wednesday, adding to its tenfold jump in value this year
and fuelling a debate as to whether the virtual currency is gaining
mainstream acceptance or is merely a bubble waiting to burst.
The steep rise in the price of bitcoin and other virtual currencies this year has divided the financial community on their merits and whether — or when — the value might come crashing back down.
The CEO of JPMorgan Chase has called bitcoin a “fraud,” as it is not based on anything other than software code and is not backed by any monetary authority. Other executives, including International
Bitcoin was created about a decade ago as an alternative to government-issued currencies.Transactions allow anonymity, which has made it popular with people who want to keep their financial activity, and their identities, private.
A new market enjoys a boom when professional investors start entering the market. That’s followed by euphoria as others rush in to partake in the gains. Wilson says bitcoin could rise a lot further, but says it is merely a question of when, not if, the bubble bursts.
No comments:
Post a Comment