Bitcoin soars to record high above $6,000

[Jonathan Fairfield]

Bitcoin soars to record high above $6,000

By Gertrude Chavez-Dreyfuss

 

 

NEW YORK (Reuters) - Bitcoin surged to a record high of more than $6,000 on Friday, pushing its market capitalization to $100 billion at one point, as investors continued to bet on an asset that has a limited supply and has paved the way for a whole slew of crypto-currencies.

 

The original virtual currency has gained over 500 percent this year, more than any other tradable asset class. Bitcoin though is very volatile - posting gains and losses as high as 26 percent and 16 percent respectively on any given day.

 

On Friday, bitcoin hit a record peak $6,000.10 <BTC=BTSP> on the BitStamp platform, and was last at $5,964.24, up 4.7 percent on the day.

 

Bitcoin is a digital currency that can either be held as an investment, or used as a foundation for future applications through the blockchain, its underlying technology. The blockchain is a digital ledger of transactions.

 

It is more scarce though than most people realize. The number of bitcoins in existence is not expected to exceed 21 million.

 

Analysts said it was a combination of factors that drove Friday's surge in price.

 

Charles Hayter, co-founder of data analysis website Cryptocompare in London said hopes that China will soften its regulatory stance on crypto-currencies helped bitcoin's cause.

 

"As China ... fears fade, the price is unlocked and driven by demand and buyers entering the markets," said Hayter.

 

Over the summer, China has banned the practice of raising capital through the sale of tokens to the public in what is known as initial coin offerings. It has also ordered the shutdown of digital currency exchanges.

 

But many in the market believe the Chinese ban is temporary.

 

"China would not want to be left out of the digital currency market nor the development of blockchain applications in general," said Jason English, vice president of Protocol Marketing, at Sweetbridge, a global alliance in Zug, Switzerland that aims to use blockchain to create a liquid supply chain.

 

"As much as 60 percent of the world's bitcoin mining is happening in China, and therefore, many of the large ... investments in ICO projects have also been coming from crypto-currency holders in China, whether directly or indirectly," English added.

 

Sean Walsh, a partner at venture capital firm Redwood City, Ventures in Redwood City, California, also believes investors have been going back into bitcoin given the still uncertain global regulatory environment on crypto-currencies.

 

A big part of bitcoin's recent surge was the ICO craze, which exploded this year. Bitcoins and ether, another digital currency, are used to purchase tokens for ICOs.

 

(Reporting by Gertrude Chavez-Dreyfuss; editing by Diane Craft)

 

 

-- © Copyright Reuters 2017-10-21

[Dario]

So it is and so be it written. Time to get in.

[surinteacher2016]

Or is it time to wait see the outcome of the SegWit2x fork? One must be extremely cautious in the next month or so. I dont see the 1x and 2x chains co-existing for too long. Obviously if you own bitcoin at the moment it will be automatically cloned on the new chain but what will happen to the price?

[Maestro]

Here's a chart:

 

[janclaes47]

https://www.cnbc.com/2017/10/23/prince-alwaleed-says-bitcoin-will-implode-enron-in-the-making.html

 

Prince Alwaleed says bitcoin will implode: 'Enron in the making'

 

Alwaleed said Monday he agrees with JPMorgan Chase CEO Jamie Dimon, who last month called bitcoin a "fraud" that will eventually blow up.

BlackRock CEO Larry Fink has also called the digital currency an "index of money laundering" for its ability to facilitate illegal commerce on the internet.

However, JPMorgan and other financial institutions are investing in blockchain, the technology that enables bitcoin to transfer value nearly instantly without a third-party intermediary.

[Maestro]

Removed a troll post.

[Xaos]

I got in 2.months ago. Bought for 50k thb

Its worth around 200k now.

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