Bitcoin Reaches All-Time High, Approaches USD 10000
Bitcoin has reached an all-time high of over USD 9800 and is fast approaching the psychological USD 10000 barrier. At the current rate, it is worth more than seven times an ounce of gold. The cryptocurrency, which started the year at USD 1,000, had reached USD 5,000 by October.
Experts believe that the cryptocurrency is more volatile than ever. Neil Wilson, a senior market analyst at ETX Capital said:
Rather than a commodity or currency, bitcoin is like owning stock in a company that will only ever issue 21m shares and never pay a penny in dividends.
The only way it has value is if the next guy is willing to pay you more for it – the greater fool. With no intrinsic value to bitcoin, it’s hard to see this as anything other than a giant speculative bubble
Bitcoin is a type of cryptocurrency which operates on the encryption technique but, does not have a legal backing from the central bank. It is an unrelated digital private currency created by Satoshi Nakamoto in 2008.
Bitcoin has no value as it is like a digital form of private currency and does not have any underlying asset of value -base.
Bitcoin should not be confused cryptocurrency or blockchain. Cryptocurrency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds.