It’s digital and is seen as an alternative. I guess you know what I’m talking about: Bitcoin!
Created through a complex computer process, Bitcoin is monitored by a network of computers all across the world.
Lately, Bitcoin has seen a crazy rise. In just the last 48 hours, it smashed through the $12,000 mark, then $15,000 and past $16,000.
Bitcoin is even breaking its own record, leading the cryptocurrency market to pass $400 billion. According to CoinMarketCap.com, Bitcoin represents 63% of the entire market and, just 10 days ago, the market surpassed $300 billion.
So, is it good thing to invest in Bitcoin?
Stefan Ingves, chairman of global regulator the Basel Committee and governor of Sweden’s Riksbank, said that investing in Bitcoin, or any other similar instrument, is a “dangerous” prospect as it lacks support from central banks and international regulators.
He even compared it to what happened in the past with tulip mania: “If you look at what has happened in the past when it comes to reaching those type of heights, be it tulip bulbs or a bunch of other things over the centuries, the odds are against those who actually think that this is going to be the future.”
Ingves is not the only one to compare the Bitcoin craze to the tulip mania that occurred almost 400 years ago.
On the other hand, Bitcoin has gained legitimacy from the CME and the CBOE, Chicago’s two largest derivatives exchanges.
Will Bitcoin’s value continue its rise?