How exactly did we arrive at this bitcoin phenomenon?
Bitcoin has doubled in value over the last three months.
By Theodore Schleifer and Rani Molla Nov 28, 2017, 1:52pm EST
Silicon Valley’s obsession with cryptocurrencies requires no more evidence than the incredible rise of bitcoin, the alternative currency that crossed $10,000 in value on Tuesday in what is a watershed moment for the nine-year-old cash substitute.
Bitcoin has now doubled in value over the last three months — a run fueled by new interest from institutional investors like venture capital firms but also old passion from longtime enthusiasts for a once-niche payment platform. China, however, remains a looming threat.
“You’re seeing a wall of capital moving in — and if you’re looking at the fundamentals, it’s pretty stable underneath,” said Miko Matsumura, who founded a cryptocurrency exchange and has invested in several funds and startups centered around bitcoin. “You can’t have the phenomenon without both sides.”
Behind its rise is also a desire by global investors to insulate themselves against their own currencies depreciating in value. People who are nervous about money backed by a central bank with unclear controls — such as China’s — have become attracted to bitcoin, an open source currency that is less influenced by the state of the economy or any looming geopolitical risk.
But to say concerns about a bubble persist would be a massive understatement. It has crashed — hard — several times before, thanks usually to new crackdowns from China. Bitcoin’s pace of growth — plus the mere fact that as a digital currency it is not backed by a government or an army — makes more than a few analysts worry that this craze is due for another crash.
For now, though, it’s on a warpath worth some awe.
- Abuse & The Abuser
- Achievement
- Activity, Fitness & Sport
- Aging & Maturity
- Altruism & Kindness
- Atrocities, Racism & Inequality
- Challenges & Pitfalls
- Choices & Decisions
- Communication Skills
- Crime & Punishment
- Dangerous Situations
- Dealing with Addictions
- Debatable Issues & Moral Questions
- Determination & Achievement
- Diet & Nutrition
- Employment & Career
- Ethical dilemmas
- Experience & Adventure
- Faith, Something to Believe in
- Fears & Phobias
- Friends & Acquaintances
- Habits. Good & Bad
- Honour & Respect
- Human Nature
- Image & Uniqueness
- Immediate Family Relations
- Influence & Negotiation
- Interdependence & Independence
- Life's Big Questions
- Love, Dating & Marriage
- Manners & Etiquette
- Money & Finances
- Moods & Emotions
- Other Beneficial Approaches
- Other Relationships
- Overall health
- Passions & Strengths
- Peace & Forgiveness
- Personal Change
- Personal Development
- Politics & Governance
- Positive & Negative Attitudes
- Rights & Freedom
- Self Harm & Self Sabotage
- Sexual Preferences
- Sexual Relations
- Sins
- Thanks & Gratitude
- The Legacy We Leave
- The Search for Happiness
- Time. Past, present & Future
- Today's World, Projecting Tomorrow
- Truth & Character
- Unattractive Qualities
- Wisdom & Knowledge
Comments