The
first decentralized peer-to-peer payment system, bitcoin, has broken
through the $10,000 mark on South Korea’s Bithumb, one of world’s
biggest exchanges for cryptocurrencies. The price of bitcoin this
year has jumped more than 10-fold.
The
digital currency is still unrecognized or regarded as an asset by
most central banks. It started the year at below $1,000.
Now,
according to the PwC rating of the 100 largest companies, the
turnover of all bitcoins is worth more than Citigroup or the economy
of Qatar.
Bitcoin
is now facing legal recognition, and Chicago Mercantile Exchange
(CME) is interested in listing futures in the cryptocurrency. The
legal acceptance of virtual money, however, may limit bitcoin's
growth, warns Sergey Kostenko, an investment analyst at Global FX.
“This
could lead to an outflow of funds to the futures market, which may
cause a drop in its exchange value in the spot market. The sooner
this happens, the sooner we see a turn in bitcoin price,” he
told RT.
According
to Kostenko, the future of bitcoin remains “murky.”
“The
reasons for the price fluctuations are unclear and are not based on
real support, as, for example, in shares of companies or economies,
or currencies. Unlike bitcoin, price changes there are supported by
an analysis of factors of a fundamental or technical nature, not by
subjective opinion of players in the market,” he said.
November
has been a volatile month for the world's most popular
cryptocurrency. Two weeks ago, bitcoin saw it's price drop by 30
percent to $5,500. It has since nearly doubled to over $10,000.
Earlier,
analysts told RT that as more institutional investors pour money into
bitcoin, the more stable the price would get, as big-time investors
hate volatility.
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