Published: Fri, October 13, 2017
Markets | By Rosalie Gross

Bitcoin rockets past $5200 price to reach all-time high

Bitcoin rockets past $5200 price to reach all-time high

Reports have recently emerged stating that trading in the currency could resume but with increased regulation.

The prices of cryptocurrencies are likely to rise as most merchants accept digital coins such as Bitcoin to surpass credit card charges and banking laws.

After the beginning of 2017, Bitcoin has had a daily trade volume of more than $100 million. It is important to note that the valuation of Bitcoin is highly volatile and more hard to sell than traditional assets.

The price of Bitcoin reached an all-time high, smashing through the $5,000 mark as it rebounds from a short period of uncertainty. On Wednesday, Russian President Vladimir Putin warned of the risks surrounding the cryptocurrency market.

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Bitcoin, a virtual currency created from computer code, was worth only a few United States cents was launched in 2009 by someone using the Japanese-sounding name Satoshi Nakamoto.

The main reason why the valuation of Bitcoin is rising is due to a rise in demand for the cryptocurrency.

"Investors are seeing the lessons of history in the up-and-coming forks and hoping for an extra dividend", said Charles Hayter, co-founder of data analysis website Cryptocompare, adding that rumours on online forums that China could reopen exchanges could also be affecting the price.

"It is folly to think that bitcoin will ever be allowed to supplant central-bank-issued money", he wrote in The Guardian.

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