Economy

Bitcoin soars by $4000 in one day to $18000

Bitcoin soars by $4000 in one day to $18000

The swings in price occurred as the trading community prepares for the virtual currency to start trading on two established US exchanges.

As the exchange price has surged, the valuation of all the circulating bitcoins, or as it is called, the market cap of bitcoin reached United States dollars 198 billion (Rs 12.75 lakh crore) on December 3.

The increased interest has been driven by growing acceptance among traditional investors of an innovation once considered the preserve of computer nerds and financial experts.

However, as the price keeps rising, it is interesting to note one thing: Bitcoin may be speculative and volatile, but one thing is palpable at this point - where the governments and central banks have failed, bitcoin triumphs.

"Bitcoin now seems like a charging train with no brakes", said Shane Chanel, from Sydney-based ASR Wealth Advisers. At 12:02 p.m. EST, the cryptocurrency traded at $16,260.01.

But he warned: "Once the hype slows down, we will most certainly see some sort of correction".

Coinbase isn't alone in seeing bitcoin prices above $16,000.

More news: Why the California wildfires are spreading so quickly

Exchange operator Cboe Holdings will launch its bitcoin futures contract this weekend, while CME Group says its futures will launch on December 18.

The Futures Industry Association, which groups some of the world's biggest derivatives brokerages, criticized the plans in a letter to the regulator, saying that contracts are being rushed through without the risks being properly weighed up.

"Bitcoin as a digital currency is not quite there yet", the AME Cloud Ventures head told CNBC on the sidelines of the Fortune Global Forum in China.

But it has also suffered controversies.

Since the beginning of 2017, the price of Bitcoin has being increasing by leaps and bounds, from $997 on January 1 to over $9,000 by the end of November.

However, while companies like Overstock, Microsoft, and Starbucks offer customers the option to pay for products and services in Bitcoin, the cryptocurrency is increasingly being treated more as a store of value and less as a transaction currency.


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