Bitcoin Breaks through $12,000 Mark

Bitcoin continued its surge on Wednesday as it broke through the $12,000 mark. It was once again able to set its own record despite continues speculation regarding the cryptocurrency’s true value.

Gold Bitcoin on paper bills

A gold cryptocurrency balances on top of some paper bills.

The digital currency opened at $11,676.99, according to the Luxembourg-based bitcoin exchange, Bitstamp.

Bitcoin had a value of less than $1,000 per token when 2017 began, but has been constantly mounting for the past months. It broke through the $5,000 barrier in October followed by a rise to more than $11,000 less than two months later.

Due to Wednesday morning’s surge, the cryptocurrency is now valued at around $203 billion – more than double Goldman Sach’s market cap.

The digital currency was supported by the announcement made by the main U.S. derivatives regulator on Friday. The regulator said that it will be allowing CME Group Inc. and CBOE Global Markets to list Bitcoin Futures contracts.

Bitcoin was last up 6.61 percent at $12,448.88 on Bitstamp after rising to its record high of $12,450.00.

Bitcoin’s Volatility

Due to a recent plummet suffered by Bitcoin, more people have become skeptic due to its volatility.

Skeptics grew more worried after it quickly broke through $11,000 last week only to fall back to $9,000 just as fast.

One of its recent high profile critics is Nobel Prize-winning economist Joseph Stigilitz. According to him, Bitcoin should be outlawed.

Another critic is chief market strategist Mick McCarthy. “It took a long time to establish the methodology and the way Bitcoin was traded. The original appeal came from the fact they were unregulated. However it’s clearly moved out of those shadows and into center stage,” he said.

He then added, “We are in the throes of a bubble market, and one of the characteristics of a bubble market is that there is no way to know when the bubble will burst.”

Stephen Roach, a well-respected economist, also weighed in with his opinion on the said cryptocurrency. He stated that he was deeply skeptical when it comes to investing in the digital currency.

Roach said that investing in the cryptocurrency is a “toxic concept” for the investors. “This is a dangerous speculative bubble by any shadow or stretch of the imagination.”

“I’ve never seen a chart of a security where the price really has a vertical pattern to it. And bitcoin is the most vertical of any pattern I’ve ever seen in my career,” Roach concluded.

Bitcoin Association of Hong Kong president Leonhard Weese stated, “There is a lot of money flowing into bitcoin right now, mostly motivated by “fear of missing out” and greed.”

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