A year ago, you could buy one Bitcoin for about seven hundred and thirty dollars in currency exchange sites online.
Now,the same Bitcoin is worth nearly ten thousand dollars.Why?
Most likely,it is because there’s a lot of speculators that have seen the rapid price rise in Bitcoin and decided that this would be a good gamble for them to get in.
There have been signs the financial world has become more accepting of the virtual currency.
Japan has recognized it as an official method of payment and the world’s largest derivatives exchange operator,
CME Group plans to start offering Bitcoin futures before year’s end.
Bitcoins market capitalization is now larger than giant reality based companies like Walt Disney and IBM. Investors have taken notice.
Coinbase, a popular online trading platform now has more than 13 million users, up more than 300 thousand in the past week alone.
Some financial experts see the rapid run-up in bitcoins price as a classic symptom of economic delusion.
Bitcoin is a speculative bubble,the only question is when it’s going to burst and who is going to be left holding the bag?
In the end,the people that are holding it will hold something that is worth nothing.
Bitcoin trading has historically been extremely volatile, with the price spiking and crashing as it did in 2013 and 2014.
And Bitcoin has also been linked to crime as hackers, narcotic sellers and child pornography peddlers prefer the anonymity, it provides for illicit transactions.