AFP / Laurence CHU
Bitcoin prices in the past year
Bitcoin plowed $ 14,000 to a fresh record Thursday, triggering a warning the cryptocurrency was “like a charging train with no brakes” and prompting fresh concerns about its looming launch on mainstream markets. It touched a new high of $ 14,485 before slipping back to $ 14,398 in Asian afternoon trade, according to Bloomberg News.
The rally came just a day after the virtual currency, which was used to buy everything from an ice cream to a pint of beer, hit the $ 12,000 mark for the first time. Bitcoin – which came into being in 2009 as a result of a low rate of $ 752 in mid-January, and was dramatically in the past month. The growth is driven by growing acceptance among traditional investors of an innovation considered the preserve of computer nerds and financial experts. But some, including the US Federal Reserve, have been warned against dabbling in Bitcoin and it has increased. “Bitcoin does not seem like a charge,” said Shane Chanel, Sydney-based ASR Wealth Adviser. “There is an unfathomable amount of new participants piling into the cryptocurrency market.” But he warned: “We are more likely to see some sort of correction.” – Financial industry concerns – There is a need for further discussion on the future of the trading system in the United States of America. Bitcoin is the CBOE Futures Exchange from this weekend and the world’s biggest future, the Chicago Mercantile Exchange (CME), from December 18. The Futures Industry Association, which groups some of the world’s largest derivatives brokers, criticized the plans in a letter to the regulator, saying that contracts are being broken down. “A more thorough and considered process for a robust public discussion among clearing firms firms, exchanges and clearing houses,” said the association. Transactions happen when heavily encrypted codes are passed across a computer network. Bitcoin and other virtual currencies use blockchain, which records transactions that are updated in real time on an online ledger and maintained by a network of computers. But it has also suffered controversies. In 2014 major Tokyo-based Bitcoin Exchange MtGox collapsed after admitting that 850,000 coins – worth around $ 480 million at the time – had disappeared from its vaults. Bitcoin’s use on the underground Silk Road website, where users could use it to buy drugs and guns, also raised suspicions about the virtual money. – Bloomberg News contributed to this report –
AFP / Laurence CHU