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Bitcoin rises above $ 14,000 to a new high



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Earlier this year, the value of Bitcoin was less than $ 1,000

Bitcoin crossed $ 1

4,000 (£ 10,460; € 11,870) on Thursday, raising $ 2,000 in less than 24 hours.

The cryptocurrency began the year below $ 1,000 but continues its rise despite warnings of a dangerous bubble.

Bitcoin reached the last milestone during the first operations in Asia, according to the Coindesk.com website.

The new record comes a few days before the launch of bitcoin futures in two exchanges, including the world's largest futures exchange, CME.

Open bets firm CMC Markets said the rise had all the symptoms of a bubble market and warned that "there is no way to know when the bubble will burst."

What's behind the Bitcoin gold rush?

The American regulator approves the negotiation with Bitcoin

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What is Bitcoin?

There are two key features of Bitcoin: it is digital and it looks like an alternative currency.

Unlike notes or coins in your pocket, it largely exists online.

Second, Bitcoin is not printed by governments or traditional banks.

A small but growing number of companies, including Expedia and Microsoft, accept bitcoins, which function as virtual tokens.

However, the vast majority of users now buy and sell them as a financial investment.

The rapid rise of the digital currency of around $ 1,000 at the beginning of the year has put it in the spotlight.

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

Financial regulators have taken a variety of views on the state of digital currencies and their risks.

The UK Financial Conduct Authority warned investors in September that they could lose all their money if they buy digital currencies issued by companies, known as "initial currency offers."

But last week a US regulator agreed to allow two traditional exchanges, CME Group and CBOE Global Markets, to begin trading in Bitcoin-related financial contracts.

The announcement of the Commodity Futures Trading Commission (CFTC) that will allow investors to buy and sell "future" contracts in bitcoins, an agreement to buy the cryptocurrency, for example, in three months at a certain price, It was seen as a turning point for Bitcoin.

Director, Global Payments, Cambridge, global product and market strategy Karl Schamotta said that move was behind the last rally: "The perception in homes around the world that the CME and the CBOE are giving legitimacy to Bitcoin is really what is driving the massive rally here. "

Leonhard Weese, president of the Bitcoin Association of Hong Kong, said the increase in the value of Bitcoin was "mainly motivated by fear of getting lost and greed."

Bitcoins are created through a complex computer known as mining, and then monitored by a network of computers around the world.

A constant flow of approximately 3,600 new bitcoins per day is created, with approximately 16.5 million in circulation from a maximum limit of 21 million. [19659031]
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