The value of Bitcoin continues to rise, this time for the sixth consecutive day, and came to pass the barrier of 11 thousand dollars in about 12 hours as the gains accelerate. Experts advise caution and warn that we can face a "bubble". The controversial digital currency reached $ 11,000 early Wednesday, hours after exceeding $ 10,000 for the first time. At 9:16 am ET, bitcoin had jumped to $ 11,377.33, according to CoinDesk.
The value of Bitcoin officially passed $ 11,000.
Bitcoin shook hundreds of dollars on Wednesday morning. The digital currency reached $ 11,000 early Wednesday, hours after exceeding $ 10,000 for the first time. At 9:16 am ET, bitcoin had jumped to $ 11,377.33, according to CoinDesk. The new milestones brought with it a rapid volatility.
"Parabolic rallies are intrinsically unsustainable, otherwise the value of bitcoin would surpass all the wealth of the world in a few years," said Ari Paul, CIO and managing partner of cryptographic investment firm BlockTower Capital, in an email to CNBC. "But ... while the pace of the rally is unsustainable and inevitably there will be corrections and falls over time, it's still 'cheap'."
The Bitstamp based in Luxembourg, one of the largest exchange markets for cryptocurrencies, reports that the price of Bitcoin shares rose 15% on Wednesday, and yesterday fell 3.7% to $ 9,500. "As many experienced traders know too well, everything that goes up in an arrow will fall quickly too, when its time comes and the time will come," warns James Hughes, analyst at AxiTrader, quoted by Reuters.
Bitcoins, a controversial currency
Given that bitcoin's market capitalization is less than $ 200 billion, enthusiasts point out that digital currency could rise dramatically if it attracts even a small fraction of the world's $ 200 trillion in assets from the traditional financial market.
Much of the incredible initial profits of bitcoin came just 12 hours after the criptodivisa broke the $ 10,000 mark that many analysts had been exaggerating for months. But few saw it happen so quickly.
Despite the warnings that we would be facing a bubble phenomenon, the value of Bitcoin continued to rise and in just over 12 hours it went from 10 thousand dollars to 11395 dollars. Blockchain.info, one of the largest providers of Bitcoin portfolios, says it received more than one hundred thousand new customers only on Tuesday, making the total reach 19 million, according to Reuters.
Bitcoin was created in 2008 and uses encryption and blockchain databases to allow the transfer of funds quickly and anonymously, outside of a centralized payment system.
Although several experts warn about the bubble phenomenon, it is also consensual that the value of Bitcoin should still rise for some time.
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