Home / Business / Bitcoin crosses through $ 17,000 as concerns grow

Bitcoin crosses through $ 17,000 as concerns grow



  Bitcoins and notes in dollars Image copyright
Reuters

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The value of Bitcoin has been very volatile during its nine years of history

Bitcoin briefly crossed the $ 1

7,000 mark (£ 12,615) on volatile Asian trading, extending its execution record.

The cryptocurrency has shot up around 70% this week according to Coindesk.com, despite new warnings of a dangerous bubble.

Its spectacular increase has been compared to a "freight train without brakes".

Monte, an industry group has warned that plans to start trading bitcoin futures were "rushed".

Critics have said that Bitcoin is going through a bubble similar to the dotcom boom, while others say it is going up in price because it is crossing the mainstream financial.

"Bitcoin now looks like a freight train without brakes," said Shane Chanel of ASR Wealth Advisers, based in Sydney.

The price increase of Bitcoin has been helped by the upcoming start of the futures market this weekend.

Futures trading

Bitcoin futures will be launched on the Cboe Futures Exchange, based in Chicago, on Sunday. CME will begin its bitcoin offer a week later.

But the Futures Industry Association, which includes the main banks, agents and brokers of Wall Street, has written to the US regulator for concern that the contracts have been approved "without adequately weighing the risks".

"A more thorough and considered process would have allowed a solid public discussion among member firms, stock exchanges and clearing houses," the association said.

While Goldman Sachs is a member of the association, it is also one of the banks that will work as an intermediary to help eliminate bitcoin futures contracts for some of its clients.

A spokeswoman for the investment bank said it was assessing the risks as part of its due diligence process.

Many large investors have been reluctant to stack up in the cryptocurrency market unless it is regulated.

But the prospect of a bitcoin futures market has raised hopes among bitcoin enthusiasts that it will be considered sufficiently "regulated".

& # 39; Major gamble & # 39;

While bitcoin has become more common in recent weeks, many observers warn that the bitcoin market could be a bubble waiting to appear.

"Bitcoin is still a big bet since it's a big advantage that stays in unexplored waters, we just have not experienced this before," said Nigel Green, founder and CEO of deVere Group.

"An asset that rises almost vertically should normally sound alarms for investors," he added.

But even if a collapse or major correction occurs, some analysts have said it is unlikely to pose a risk to the global economy.

While billions of dollars have been invested in bitcoin, its total market value of $ 268bn remains relatively small compared to other asset classes.


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