The value of bitcoin flies to dangerous summits

As its use expands, e-money is attracting interest from investors and speculators, who are pushing prices higher and higher. But until when ? ” If there is a bubble, it’s in the bitcoin ” headlined Wall Street Journal Since November 19, 2017. Since then, the value of cryptocurrency has steadily increased to reach, on November 27, $ 9,650 per unit, which is almost the psychological threshold of $ 10,000. And the media, of Fortune at Quartz going through the Financial Times, to comment on the surging thrust of this virtual currency, which has increased, more and more quickly, more and more strongly, towards the peaks. Fact, reminds the site Quartz, ” the bitcoin passes symbolic barriers every week “. And if it had taken a little more than two weeks to rise from $ 7,000 to $ 8,000, in a week its value jumped from $ 8,000 to over $ 9,000. Remember, as all media do, that the price of bitcoin did not exceed $ 1,000 at the beginning of this year … Why such a runaway? The reasons are multiple. ” While not so long ago some observers wondered if bitcoin would not be overtaken by other cryptocurrencies like ethereum, which, unlike bitcoin, were not associated with reprehensible practices such as ransom demands after hacking or money laundering, this feeling changed dramatically from April [2017], and the climb began ” argues the Wall Street Journal. Start-ups raise funds in bitcoins This change in perception is due not only to greater use by the public – the magazine Fortune underlines in this regard More and more payment management companies are now accepting bitcoin – but more importantly, many start-ups have started raising money in this currency in recent months. ” More than 160 start-ups have introduced bitcoin introduction [with reference to the expression IPO], stresses the Wall Street Journal, l the total amount raised to more than $ 3 billion. ” As a result of all this activity, markets, as well as large financial institutions like Goldman Sachs, have begun to focus on bitcoin transactions. To the point that the Chicago futures markets, like the Chicago Mercantile Exchange ( CME ), which offer futures and options (both to hedge against price fluctuations and to speculate, up or down prices), are preparing to launch such financial instruments. They should be available by mid-December. Heavy potential losses ” The courses were also boosted by the announcement of the CME , last month, future bitcoin futures, in response to growing demand from users of the transaction platform ” stresses the Financial Times. “This initiative, from a recognized market widely used by hedge funds, has increased the legitimacy of bitcoin “, Concludes the City newspaper. Legitimate, no doubt, but also volatile. And therefore potentially dangerous. The course of bitcoin has already collapsed in the past. After interviewing several analysts, Fortune admits he does not know where the ceiling for the bitcoin is, nor ” what this recent flight signals, beyond the interest of the investors who proclaim all ‘me too, I want, me too’ ” . Is this the sign of a continuation of the ascent or, on the contrary, of a crash due to the explosion of the bubble? What, in any case, worry the regulatory authorities, stresses the Financial Times. “Bitcoin bypasses central banks, which means investors have no protection as consumers. Some regulators have already alerted investors of these dangers, as well as the possibility of heavy losses “, concludes the London business daily.

Leave a comment

Send a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.