Bitcoin has surged by over 1000% in 2017 to reach a record-breaking value. No other crypto-currency has ever achieved such levels. Increased investor interest in Bitcoin on Thanksgiving holiday made the digital currency to surpass $10,000 level for the first time.
The rise in bitcoin value resulted in mixed reactions from different financial experts and the general public. There are numerous claims emerging about the cryptocurrency being a bubble after breaking the $10,000 level. Amid bubble rumours vice president of Coinbase Inc, Adam White disagrees with the perception that bitcoin is a bubble.
Bitcoin value skyrocketed all the way to $11 377.33 within hours on November 27 and this affected online gambling sites. However, the value of the bitcoin is highly affected by speculation and over an hour later on the same day, it fell by more than drastically to $10,777.27. This was as a result of sell orders beginning to pile up against very few investors willing to buy the digital currency. Moreover, after setting an all-time high above $11,000 it brought unprecedented rapid volatility to bitcoin exchange market.
GDAX has reported that average daily trading volume has multiplied 10 times in 2017 leading to a sharp increase in the value of bitcoin. Other cryptocurrency experts are really convinced that bitcoin is the future currency that is going to be used by many people around the world.
Most reputable platforms for buying and selling bitcoin experienced all-time high traffic during Thanksgiving holiday. Even online casinos like casinous had a lot of bitcoin deposits. If it is a bubble, the bubble is likely to burst when there will be more sellers than buyers. We’ve seen how the digital currency plunged by 18% after topping $11,000 when many crypto investors were trying to sell their bitcoins.
Nonetheless, bitcoin utility has also increased and it is now used for daily transactional purposes by many people. TechCrunch founder Mike Arrington said “ICOs are the future” and he is launching a 100 million “cryptofund”.