Bitcoin’s rise over the past few days has been nothing short of meteoric. It has taken over five years for the price of bitcoin to finally cross the first $1,000 mark. In contrast, the next $1,000 increase was a relatively swift three-and-a-half-year journey. In the past few months, bitcoin has broken through $1,000 thresholds every few weeks. In the past few days, it has taken just hours.
Bitcoin is now on course to create the biggest buying rush in history after its value rose to an historic high of $17,000 per unit.
Needless to say, this massive rise in value has attracted a lot of attention to what was once largely ignored as a niche investment, and Bitcoin has now all but come into the mainstream as a serious player in the world of finance. This has left a lot of people hurriedly wanting to learn all about Bitcoin, how it works and how they can invest in it.
But the volatility in this market has also left a lot of people very concerned. The Financial Times has reported today that analysts have indicated that it is difficult to judge why the digital currency has been moving in the way it does on any given day. The volatility is now beginning to resemble an asset price bubble and there is no way to fully control the way it operates. We are entering unchartered territory with Bitcoin and that is creating a lot of confusion in the financial world.
In addition, the software used by Bitcoin is struggling to cope with the increased investment, which is leading to security concerns. The developers released a series of updates earlier this year aimed at easing congestion but this has only divided the community further. NiceHash, which had millions of dollars of Bitcoins stolen yesterday, is just one example of how the cryptocurrency is susceptible to hacking issues.
Nevertheless, recent days show that this is a currency that can no longer be ignored and it will be intriguing to watch Bitcoin’s progress in the market even over the next few days.