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Bitcoin Crosses Historic High of $10,000 and Then Drops Sharply

The cryptocurrency has increased by more than tenfold this year
by TR Pakistan

The value of digital currency bitcoin touched the $11,000 mark on Wednesday after it climbed by $3,000 in a week.

According to CoinDesk, bitcoin’s value rose by $1,000 in just 12 hours and then dropped by more than 18 percent from a record high of $11,388.33 to $9,290.30 on the same day.

Bitcoin is a digital asset invented by a programmer or a group of programmers known as Satoshi Nakamoto in 2009. It is used as a unit of account and all bitcoin transactions are recorded in a shared public ledger called the “blockchain” which authenticates each transaction. Simply put, bitcoin is a decentralised currency without a central bank or a federal reserve.

The digital asset has increased by more than 1,000 percent since the start of 2017.

Read more: Can Cryptocurrency Work in Pakistan?

Despite persistent fear that this bubble will burst soon, a record number of new users are signing up for the cryptocurrency. Blockchain.info, one of the biggest global bitcoin wallet providers, has said that a large number of new users are signing up, with more than 100,000 users joining on Tuesday alone. It also claimed that the total number has risen to more than 19 million users.

However, analysts are suggesting that most people are buying this digital currency not for use or as a means of exchange but to speculate on it in order to increase their capital.

The Wall Street Journal has said that Nasdaq Inc. is planning to launch a futures contract, based on the cryptocurrency next year. Broker Cantor Fitzgerald is also planning derivatives based on the cryptocurrency on its exchange.

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