Bitcoin’s value has skyrocketed to a new plateau, leading many financial analysts to once again raise serious questions about its volatility.
Reuters reports the new development follows a series of boosts in value for the flagship cryptocurrency. Just a few months ago, it was valued at just over $2,500, before once again breaking new ground at $5,000.
Bitcoin hasn’t seen such a run since it first began becoming a household name in 2012 and 2013. Back then, it was barely valued at $100.
Despite what would normally be considered good news for the cryptocurrency, Bitcoin still has its horde of skeptics. Among these are Credit Suisse Chief Executive Tidjane Thiam, who suggests cryptocurrency is nothing more than a fad for the finance world.
“From what we can identify, the only reason today to buy or sell bitcoin is to make money, which is the very definition of speculation and the very definition of a bubble,” he told Reuters.
Thiam isn’t alone in raising such an alarm. With Bitcoin known for its wild back-and-forth performances, many financial analysts are wondering if it will ever truly stabilize and establish a short-term bottom value.
“Monday’s sharp recovery and the overnight resilience suggests that the rumored rotation of money out of bitcoin and into bitcoin cash and other alternative currencies may have largely come to a halt,” Omkar Godbole wrote for Coindesk.com. “However, it seems the market is still pricing in the recent suspension of the Segwit2x hard fork and and redetermining the value of competing protocols.”
Explaining Bitcoin’s trends has proven to be almost as complicated as explaining Bitcoin itself. Check out the video below for a succinct report on what could truly represent the future of currency.
Regards,
Ethan Warrick
Editor
Wealth Authority
