Bitcoin value surges past $9000 mark
MANILA, Philippines – The cryptocurrency Bitcoin reaches another milestone as it breaks through the $9000 mark, reaching record-highs of $9484.94 per bitcoin on Sunday, November 27, US time, according to several online reports.
Bitcoin's value has seen a tremendous leap this year, growing from around $800 to $1,150 at the start of the year to where it is now. The leap represents, at the most, a growth of more than 1100% in value in 11 months.
Bitcoin currently has a market capitalization of more than $150 billion, which is more than half of the entire cryptocurrency market currently valued at around $290 billion. (READ: What is Bitcoin?)
The growth, as Fortune notes, has largely been fueled by "the entrance of a broader swathe of global retail investors into the market." Alongside these global giants, there are also speculative investors looking to get rich quick.
But even as the cryptocurrency explodes in value, there is still significant belief that the industry is a bubble, and that it could collapse just as fast as it rose – which is why it hasn't yet fully attracted the investmend dollars of the larger public.
It's a high-risk instrument with no official regulating body. Most of the money being invested in Bitcoin this year is being fueled by the speculation that Bitcoin eventually becomes a necessary, integral part of world finance. A Forbes warning sums up the risk involved with the electronic money: "Anyone considering it should be prepared to lose their entire investment."
Further complicating matters is that the cryptocurrency industry is currently littered with scams and companies that may try to take advantage of investors who are too eager to take a bite out of the Bitcoin pie. Routinely, Bitcoin's value sees sharp drops – drops that would give the risk-averse some second thoughts on investing.
In spite of these weaknesses, many observers believe that the coin's value will continue to increase, believing that it will hit the $10,000 mark by the end of the year. – Rappler.com