Bitcoin, the most popular digital cryptocurrency, has just shot past $18,000 (Rs. 18.03 lacs) and this is yet another example of how volatile and unpredictable it can be.
The anxiety of investors throughout the globe is self-explanatory as only two days ago one Bitcoin was worth $15,640 (Rs. 15.7 lacs) which is over $2000 (Rs. 2 lacs) below its current value.
Controversially, businesses are legitimizing it, as a product on a Chicago exchange is allowing investing parties to bet on its future prices.
Bitcoin’s price surged to $18,000 shortly after its inauguration into the Chicago Board Options Exchange (Cboe) at a price of $15,000. The heavy traffic of investors on Cboe’s website caused the trading to come to a standstill as the website stopped functioning. The Cboe informed that the trading systems were functioning normally but it was their website that couldn’t handle the heavy load.
Due to heavy traffic on our website, visitors to https://t.co/jb3O722hoo may find that it is performing slower than usual and may at times be temporarily unavailable. All trading systems are operating normally.
— Cboe (@CBOE) December 10, 2017
A business school professor, Daniele Bianchi says,
Although it has been thought of as a peer-to-peer payment system, it is evident that bitcoin is gaining more and more legitimacy as an asset class. Today’s launch of bitcoin futures has the potential to add further momentum and thus increase the appeal of the cryptocurrency to both institutional and retail investors.
Bitcoin is used as an alternative to banks and legitimate currency for people who prefer staying “off the books”. Trading at only $996 at the beginning of this year, the stupendous increase in such a short time suggests that it will be traded at even higher prices next year.