Bitcoin reached a new high on Wednesday as investors and speculators pile in to the virtual currency.
(CCM) — The Bitcoin virtual currency has smashed through its previous price ceiling, peaking at $6,649.33 on Wednesday, according to a BBC report. The currency was worth less than $100 in June 2013 and less than $1,000 at the beginning of this year. But since then the price has continued to skyrocket. The total value of all Bitcoin in circulation is now in excess of $110 billion.
There are several reasons why Bitcoin has appreciated so much, so quickly. One is that a spin-off currency called Bitcoin Cash proved not to be as disruptive as anticipated. And instability in the Korean Peninsula may also have prompted people in the region to invest in Bitcoin instead of Japanese Yen or U.S. dollars.
More recently, a U.S.-based derivatives marketplace operator called CME Group announced plans to launch a Bitcoin futures product, the report says, which may also have contributed to the currency's strength.
The BBC says that Coinbase, a company that facilitates trades in digital currencies, has been signing up between 35,000 and 50,000 new Bitcoin users every day. But Garrick Hileman, a research fellow at University of Cambridge, warned the BBC that if government regulators crack down on virtual currencies then the value of Bitcoin could drop significantly.
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