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Bitcoin breaches new milestone by smashing past $5 000 mark

Cryptocurrency hits another record high after one-day decline.

Bitcoin surged to a fresh record Thursday as the enthusiasm for cryptocurrencies showed little signs of abating.

The world’s largest cryptocurrency rose as much as 8.4% and was trading 7.9% higher at $5 209 as of 12:34pm in London, resuming gains after a one-day break. As recently as December, bitcoin was trading at less than $1 000 dollars.

 

Bitcoin tumbled below $4 000 last month after China’s central bank stepped up regulations on digital currencies, banning initial coin offerings, a popular means of fundraising for startups. Recent reports that the Chinese government will ease regulations and that Goldman Sachs Group is exploring how it could help its clients trade cryptocurrencies are now helping sentiment.

“Everyone seemed to agree that once it broke through $5,000, the sky is the limit. I wouldn’t be surprised to see it double from here in a very short space of time,” said Ben Kumar, a money manager at Seven Investment in London, who invests in Bitcoin in an individual capacity. “There’s a long time to run before people get tired of chasing the next big thing.”

Read: Bitcoin retaking place as crypto king as smaller tokens slide

The digital currency’s 440% surge this year has divided the financial community between those convinced it is a bubble on the verge of popping and those looking for ways to piggyback on its success. Goldman Sachs is in talks with cryptocurrency experts but hasn’t yet formulated a business plan, a timetable for implementation or made any bitcoin-related investments, a person briefed on the plan said earlier this month.

What happens from here depends a lot on how governments decide to regulate the virtual currency, Kenneth Rogoff, professor of economics and public policy at Harvard University, wrote in a column published in Project Syndicate this week. Global efforts to regulate digital money have accelerated in the past month since China’s ban.

At least 13 other countries have imposed new rules or announced plans to tighten regulations. Russian President Vladimir Putin this week called for regulation of cryptocurrencies, but stopped short of backing a broad ban.

“It’s a very speculative market,” Jon Moulton, a UK-based private equity veteran who owns bitcoins, said in an interview with Bloomberg TV’s Francine Lacqua. “It’s going to be a very volatile asset for a long time.”

 

© 2017 Bloomberg 

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Again all moneyweb reports on are dramatic price increase/decrease. You know that a contentious hard fork is coming up? Perhaps the biggest event to happen in bitcoin history. Very disappointed by the quality of content from moneyweb regarding bitcoin.

Now what would have been a interesting article would be :

1 : BTC market cap in relation to total crypto market cap, and why it’s climbed over the recent months.

2 : The upcoming hard fork in BTC, and what that means for people holding BTC

3 : The fact that neither side of the Segwit2x argument want to implement reply protection for the upcoming fork and that it could potentially lead to people losing their BTC on whichever chain of BTC they are on due to reply attacks.

Hi PJJ,

For me as a sceptical, somewhat ignorant, potential BTC’er, I would like to know what the NAV(I suppose where the cash is and how much) of BTC is? Should there be a run on it, what happens then? Perhaps you can assist here please?

Indeed yet all we see is.
“Look bitcoin is going up.”
“Look bitcoin is going down.”
And articles by people that clearly don’t understand the basics of a decentralized system trying to tell us what bitcoin is and isn’t.

Look at the 3 point PJJ made. Does your authors have any clue what he is talking about? This is what is happening with bitcoin currently and is 1000% more important than the little rise we see in bitcoin today. This is volatility nothing more.

Maybe you guys should stick to what you know because your articles are laughable and clearly shows your lack of knowledge on the subject.

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