Bitcoin value has increased again this time it has reached over $16,000. This is yet another record-breaking increase for the Bitcoin cryptocurrency. At the start of this year, Bitcoins were worth just $1,000 each. However, they have continued to rise in value throughout the year at a rapid. A rate that could create a bubble that may eventually burst.
Bitcoin Value Increases 50% in a Week
Coindesk.com has confirmed a top price of just over $16,050 which represents a 50% increase in value over a week. Such a level of price inflation cannot continue much longer before it bursts although many disagree. To accentuate the importance of this amazing price increase, Bitcoin futures are about to be launched on two exchanges, one of which is CME, the world’s largest futures exchange.
Initially, the cryptocurrency was used like an online virtual currency and used to buy things. Now, however, it appears to be primarily used as a financial investment, with people buying and selling them according to the market. Some businesses, including Microsoft and Expedia, still use them as virtual cash or tokens, although many are now becoming wary.
Is the Bitcoin Bubble About to Burst?
There is the talk of them becoming a huge bubble, much like the dotcom boom that resulted in massive losses for many individuals and the online companies they had invested in. However, others believe that the recent increases in price for these ‘virtual tokens’ is due them becoming part of the financial mainstream rather than a quirky currency.
Bitcoin is not a currency as most people know it. There are no notes or coins that are issued by any bank. They are like tokens that cannot be spent other than via an online link. It is totally digital. Some types of business have adopted them as a viable digital cryptocurrency, while others have dropped Bitcoin completely. They are not confident of the ability of this type of cryptocurrency to stand the test of time and believe that the Bitcoin bubble may shortly burst big time.
Bitcoin Value: Is Bitcoin a Currency, an Investment or a Massive Bitcoin Bubble?
The choice is yours. Bitcoins have become more of an investment than a genuine currency. Those that have them may keep them for a while yet to assess the way the cryptocurrency market is going. While Bitcoin value continues to rise, the bubble grows.
The president of the Bitcoin Association of Hong Kong, Leonhard Weese, has stated that the massive rise in value is due to people mainly being “motivated by fear of missing out and greed.” Will the Bitcoin bubble burst? Time will tell.
