link1029 link1030 link1031 link1032 link1033 link1034 link1035 link1036 link1037 link1038 link1039 link1040 link1041 link1042 link1043 link1044 link1045 link1046 link1047 link1048 link1049 link1050 link1051 link1052 link1053 link1054 link1055 link1056 link1057 link1058 link1059 link1060 link1061 link1062 link1063 link1064 link1065 link1066 link1067 link1068 link1069 link1070 link1071 link1072 link1073 link1074 link1075 link1076 link1077 link1078 link1079 link1080 link1081 link1082 link1083 link1084 link1085 link1086 link1087 link1088 link1089 link1090 link1091 link1092 link1093 link1094 link1095 link1096 link1097 link1098 link1099 link1100 link1101 link1102 link1103 link1104 link1105 link1106 link1107 link1108 link1109 link1110 link1111 link1112 link1113 link1114 link1115 link1116 link1117 link1118 link1119 link1120 link1121 link1122 link1123 link1124 link1125 link1126 link1127 link1128 link1129 link1130 link1131 link1132 link1133 link1134 link1135 link1136 link1137 link1138 link1139 link1140 link1141 link1142 link1143 link1144 link1145 link1146 link1147 link1148 link1149 link1150 link1151 link1152 link1153 link1154 link1155 link1156 link1157 link1158 link1159 link1160 link1161 link1162 link1163 link1164 link1165 link1166 link1167 link1168 link1169 link1170 link1171 link1172 link1173 link1174 link1175

Tag: bitcoin hedge fund

Bitcoin nears $10,000 mark as hedge funds plough in

Bitcoin nears $10,000 mark as hedge funds plough in

Bitcoin nears $10,000 mark as hedge funds plough in

  • Cryptocurrency now worth seven times an ounce of gold, with market cap higher than IBM, McDonald’s or Disney — but analysts warn of ‘a huge bubble’
  • Bitcoin mining consumes more electricity than Ireland

Bitcoin has hit a record high after passing $9,000 (£6,700) and is close to reaching five figures as investors in the cryptocurrency shrug off warnings of a bubble.

The cryptocurrency rose to an all-time high of $9,721 on Monday. It is now worth more than seven times an ounce of gold, which is seen as a haven in times of turmoil.

In a remarkable rally, bitcoin started the year at $1,000 and smashed through $5,000 in October.

Analysts said the decision by the Chicago Mercantile Exchange (CME) to launch bitcoin futures in December had fuelled buying, but also warned of the dangers of a speculative bubble building. The digital currency has gained more than 50% since the CME announced its decision on 31 October.

Neil Wilson, senior market analyst at ETX Capital, said: “The legitimacy this gives bitcoin as a tradeable asset is very important. The market cap of bitcoin now exceeds that of IBM, Disney [or] McDonald’s.”

The value of the 16.7m bitcoin units in circulation has exceeded $160bn.

screenshot-www.theguardian.com-2017-11-28-07-56-19-584

Warning of looming pain for bitcoin buyers, Wilson added: “But for traditionalists, it’s hard to fathom. Rather than a commodity or currency, bitcoin is like owning stock in a company that will only ever issue 21m shares and never pay a penny in dividends.

“The only way it has value is if the next guy is willing to pay you more for it — the greater fool. With no intrinsic value to bitcoin, it’s hard to see this as anything other than a giant speculative bubble.”

Bitcoin is a virtual currency that emerged in the aftermath of the financial crisis. It allows people to bypass banks and traditional payment processes to pay for goods and services.

Banks and other financial institutions have been concerned about bitcoin’s early associations with money laundering and online crime, and it has not been adopted by any government.

The price has been volatile. Bitcoin plunged below $3,000 in mid-September after the Chinese authorities announced a crackdown. To help rein in some of that volatility, CME will not allow the trading of bitcoin futures at prices 20% above or below the settlement price from the previous day.

screenshot-www.theguardian.com-2017-11-28-07-58-59-094

Hussein Sayed, chief market strategist at the online foreign exchange broker FXTM, said bitcoin was showing no signs of slowing.

It is not just retail investors buying the cryptocurrency. Many hedge funds have also decided to include it in their portfolios and, according to CNBC, the financial news service, there are more than 120 funds investment devoted to cryptocurrencies.

Sayed said it was almost impossible to give the cryptocurrency a fair value based on fundamentals, but added that there had been a strong correlation between the price of bitcoin and number of users opening new wallets.

He added: “Given that number of users haven’t exceeded 0.1% of the global population, there’s still more potential for this momentum trade to continue. Whether the price will be justified in the foreseeable future, depends on the adoption and the application of the new currency, but so far it still looks unstoppable.”

The starkest warning has come from the JP Morgan chief executive, Jamie Dimon, who said bitcoin was a fraud that would ultimately blow up.

There has been a boom in initial coin offerings (ICOs), in which new cryptocurrencies are launched into the market — often backed by a celebrity, such as the American socialite Paris Hilton and the boxing champion Floyd Mayweather.

ICOs have come under increased scrutiny from regulators, owing to fears that investors are not properly protected. David Futter, a partner in the digital economy at the law firm Ashurst, predicts that scrutiny will intensify.

Source Gaurdian Business UK

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

 

 

Alan Zibluk Markethive Founding Member