Bitcoin flirted with $ 17,000 on 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. Still under $ 14,000 in Asian trading hours, it smashed through $ 15,000 in European trading and then later surged to $ 16,777.08 around 1630 GMT, according to Bloomberg data.
The rally came just a day after the virtual currency, hit the $ 12,000 mark for the first time, while it has soared nearly 70 percent in value in just one week . Bitcoin – which came into being in 2009 with a low rate of $ 200 a month 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. The NiceHash marketplace was meanwhile on Thursday investigating a security breach resulting in the theft of bitcoin. “Clearly, this is a matter of deep concern, and we are working on it to rectify the matter in the coming days,” NiceHash said in a statement. “In addition to undertaking our own investigation, the incident has been reported to the relevant authorities and law enforcement and is co-operating with them as a matter of urgency.” 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. 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.