Bitcoin breaks above $12000 for the first time

Marco Green
December 7, 2017

As Bitcoin surpassed $15,000 for the first time ever on Thursday, more and more people are becoming aware of the cryptocurrency, which in turn is further fueling its price. A bitcoin is essentially a type of virtual currency that uses the technology of a blockchain in order to make payments securely and store money online.

Pankaj Jain, a New York-based bitcoin investor, advised small investors not to invest more than 1 to 3 percent of their net worth in cryptocurrencies, adding that high-net worth investors should refrain from investing more than 5 to 10 percent, said the report.

The currency is volatile, which has led some experts to suggest the rise in value is indicative of a bubble. Others - mostly those working for said banks - claim that it will crash and burn.

Bitcoin hit a fresh record of $14,000 Thursday as investors piled in, triggering a warning the cryptocurrency was "like a charging train with no brakes" which would inevitably slip back.

Bitcoin began the year below $1,000 but continues its sharp rise despite warnings of a unsafe bubble, reports the BBC.

Earlier this week (4 December), it emerged that United Kingdom users may soon face heightened government regulation amid fears the cryptocurrency was used to fund criminals and terrorists. However, this has become more mainstream today and the tools to create a wallet, send or receive or buy Bitcoins has become easier for the average person to start dabbling in it. Though many investors and chief executives of tech firms have criticized bitcoin, it continued to grow exponentially. How long it can ride the wave of good fortune, remains another matter altogether.

Unlike physical money, the bitcoin is stored electronically, however that doesn't mean that it can't be lost. "This is a risky speculative bubble by any shadow or stretch of the imagination".

The bitcoin's supply is limited to 21 million, which experts believe will be reached around the year 2140. I've never seen a chart of a security where the price really has a vertical pattern to it. "Like all bubbles, they burst".

Other reports by Click Lancashire

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