This Tuesday the most widely recognised cryptocurrency broke the psychological trade barrier of $10,000.
This prompted the price to reach speculative highs of $11,400 within 24 hours of hitting the mark, with a subsequent fall to $9,300 as investors cashed out shortly after. As of writing the price is at $10,500. This 1200% increase in price over the year has promoted Bitcoin’s legitimacy as a store of value or “digital gold” with greater mainstream adoption boosting demand.
Further legitimising its status as a coin of value, a recent study conducted by Dr. Sean Foley of the University of Sydney revealed that in 2016 the legal use of Bitcoin surpassed its illegal use with 8 billion in current circulation used for legal activities and 7 billion used for illegal activities.
Some predict greater highs for the coming year. Prolific stock picker Ronnie Moas who predicted the critical points of Bitcoin multiple times throughout 2017 believes it could reach $20,000 within a year, whilst previous Fortress hedge fund manager and billionaire Michael Novogratz said that “Bitcoin could be at $40,000 at the end of 2018.”
Banks and governments are paying close attention as Bitcoin continues to shake the finance world.
Image: Geralt / CC0-1.0 – Bitcoin in finger
This story is taken from the 01 December 2017 edition of The Warren Centre’s Prototype newsletter. Sign up for the Prototype here.