Many people were surprised when the price of Bitcoin rose to $ 10,000 last week, an increase of more than ten times since the beginning of the year. But this week the Bitcoin rally has accelerated. The price of Bitcoin passed yesterday at $ 12,000. This morning, it exceeded $ 15,000. As I write this, a bitcoin is worth approximately $ 15,200.
The staggering increase means that all the bitcoins in circulation are now worth around $ 250 billion. It is not clear why the price of Bitcoin is rising so quickly.
During the last year, the currency's popularity has been driven by a greater phenomenon of initial currency offers: sales of cryptocurrencies that compete with bitcoins. For many people, the easiest way to acquire these alternative cryptocurrencies is to first buy bitcoins from a bitcoin exchange, then exchange those bitcoins for another currency.
But, in any case, the ICO fever seems to have cooled since September, as some high-profile cryptocurrencies have had problems. However, during that same period, the value of Bitcoin has tripled from $ 5,000 to $ 15,000.
At this point, Bitcoin seems to be stuck in the self-perpetuating drum cycle of a bubble. This has happened to Bitcoin twice before. In mid-2011, the price of Bitcoin rose from $ 1 to $ 30 in two months, before falling back to $ 2 before the end of the year. Then, in early 2013, the Bitcoin price increased from $ 13 to more than $ 250 in four months, before losing 80 percent of its value over the course of 48 hours.
In each case, the accident was preceded by a spectacular and ephemeral meeting. It is impossible to say if this is the end of the current Bitcoin boom, or if things will get even crazier before the price is blocked. But it is a safe bet that we will see much more volatility in the coming days. Watch out.
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