Crypto & Digital Assets
Bitcoin Reaches $5.8k, an All-Time High
12 Oct 2017
Bitcoin, the most known and used cryptocurrency, has reached out the barrier of $5k in the exchange, an all-time high.
Bitcoin climbed 11 percent to an all-time high of $5,844.77, according to data from industry website Coindesk. This surpassed the previous high of $5,013.91 hit on September 2.
The cryptocurrency rose by more than 8% having started the year at $966. Bitcoin has soared by more than 750% in the past year and is worth four times as much as an ounce of gold.
But the price has been volatile. The digital currency plunged below $3,000 in mid-September after the Chinese authorities announced a crackdown. Beijing ordered cryptocurrency exchanges to stop trading and block new registrations, due to fears that increasing numbers of consumers piling into the bitcoin market could prompt wider financial problems.
Many voices have risen about this historical hit, among then it is Iqbal V. Gandham, Managing Director at eToro UK, who has disclaimed about Chinese banned. “Recent criticism from industry and regulation crackdowns in China and Russia spooked markets in recent weeks and caused the Bitcoin price to plummet. So we expect some investors to be surprised by Bitcoin bouncing back to this record high so soon afterwards.
He thinks that even though was banned by China, Bitcoin was designed to operate outside of the influence of governments and central banks, and is doing exactly that. So to investors, this bounce back in price is no surprise.
“In reality, whilst we’re excited to see Bitcoin hit this record high, this is just the beginning for Bitcoin. Bitcoin has a lot further to go than this price point to become a real-world currency, as it was designed to one day be. Most are unaware that in future people will not spend a single Bitcoin. Instead, people would spend the underlying tokens, called Satoshis, in the same way, we spend coins and not a bar of gold. A single Satoshi is only worth $0.00005 currently. Clearly, for this to gain spending power, the price of a Bitcoin will need to be significantly higher than $5,000″, he added.
Nevertheless, for him, this price peak may boost more support for the bubble argument it has seen from investors in recent months. But Bitcoin continues to argue these calls on bubble territory as they are coming far too early in the story for the cryptocurrency.
To end with, expert Iqbal V. Gandham is sure that “this record is an exciting milestone and sign of market confidence in the outlook for Bitcoin and the underlying technology behind the cryptocurrency, Blockchain. But we expect much more milestones like this to come.”
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