Bitcoin Price Soars Above $5000 to Record High

Lloyd Doyle
October 12, 2017

Other cryptocurrencies gained value in that window of time as well. Bitcoin started the year trading at $966 per token and has soared over 750 percent in the last 12 months.

The Bitcoin which now worth four times as much as an ounce of gold, currently trades at over $5,000 which is a new all time high for the famous cryptocurrency.

But other factors have gotten traders excited: An Oct. 2 Wall Street Journalarticle reported that Goldman Sachs was considering opening a unit focused on bitcoin traders. Already, the anonymity that comes with these digital transactions raises concerns about money laundering and the funding of illicit activities. A year ago it was trading at less than $650.

Nettles said interest had been much higher than anticipated and has come from banks, hedge funds and brokers.

"The interest really stems from the media hype", he added.

This week, Russian Federation has announced the regulation of digital currencies, as President Vladimir Putin said the instrument has significant financial risks.

But that was not enough to put investors off, with bitcoin rallying around 10 percent since then. As recently as December, bitcoin was trading at less than $1 000 dollars.

Despite the warnings and controversy surrounding Bitcoin, Japan and several other countries are recognising the currency as a payment method. Majority of cryptocurrency transactions occur in the Bitcoin network. Bitcoin plummeted below $3,000 in mid-September after Chinese authorities announced a crackdown on the digital currency.

"Bitcoin was created to operate outside of the influence of governments and central banks, and is doing exactly that", said Iqbal Gandham, Managing Director at retail trading app eToro, which has seen huge increases in cryptocurrency trading volumes. Its gradual price rise over the years has also made it a favorite among cryptocurrency speculators.

Other reports by Iphone Fresh

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