Bitcoin rose to another new record high on Monday as it broke through a record set during the Thanksgiving weekend stateside.
The cryptocurrency reached an all-time high of $9,682.10 mere hours after breaching the $9,400 level on Sunday. It later went down a bit to trade at $9,603.56 by 1:49 P.M. HK/SIN, listing some 3 percent rise on the day.
“The move appears to be retail driven,” said chief executive Brian Kelly, who runs a digital assets strategy company.
Another report accounted that the largest bitcoin exchange in the U.S. resulted to an addition of about 100,000 accounts. This happened between Wednesday and Friday, just around Thursday’s Thanksgiving holiday, and resulted to a total of 13.1 million accounts.
Additionally, the surge in interest is also due to a major derivative exchange company announcing that it will be listing bitcoin futures by the second week of December. This launch will mark a huge step in legitimizing it as an asset class.
Despite its 870 percent rise year-to-date, a lot of people still took to pointing out that the cryptocurrency has the potential pitfalls of something they call a price bubble.
JPMorgan Chase CEO Jamie Dimon stated in October that people who are “stupid” enough to buy the cryptocurrency will “pay the price for it.” He also said, “[t]he only value of bitcoin is what the other guy’ll pay for it.” Adding that for him, there was no point in supporting a currency that is not backed-up by the government.
Along with the continuous climb of bitcoin, the prediction made by the “Nostradamus of the markets” is coming to fruition.
In an interview held in September of 2014, venture capitalist Tim Draper asserted that bitcoin will rise to $10,000 within three years. In relation to this, it was only at $413 at the time of the interview.
Skepticism was evident even in the strong believer of cryptocurrency. Most thought that such surge, especially after the market crash of 2011, is seemingly impossible.
However, the recent surge of bitcoin proved the skeptical ones wrong.
A question was raised in May 2016 regarding what the investors will do if bitcoin does end up hitting $10,000. This was received with enthusiastic responses with most of them detailing their own ideas.
One particular bitcoin enthusiast said, “[…] apart from being happy I wouldn’t especially do anything different than today: I’d buy, accumulate, spend Bitcoin as needed, according to the products, services, ideas, investment opportunities that present themselves.”
Despite this positive outlook, there are still people doubting the worth of investing in the cryptocurrency. They are mostly concerned about the cryptocurrency’s sustainability – hard forks, price bubble, and fees and transaction fees in particular.
There are also those that believe bitcoin still has plenty more room for growth.
BWorldFinance is your primary source of news in the financial market, technology, and more. Visit bworldfinance.com now and get the latest happenings on the market.