Bitcoin hits the $10,000 bar, in an eagerly awaited day

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For the first time since its creation back in 2009, Bitcoin hit earlier today the $10,000 bar. It is now trading at $10,048 as of press time.

While some see a message that Bitcoin is not set to disappear soon, others still seem to be less impressed. They interpreted this unprecedented event as a confirmation that the online currency has become a vast speculative bubble that would end in a proportionally devastating financial disaster.

How did we end up here?

Bitcoin has seen a jaw-dropping 1366 % increase in its market value in a year-long period (November 28, 2016- November 28, 2017). Coming from less than $1,000 in January, this year continues by all means to represent a historical one, not only for Bitcoin, but for all cryptocurrencies by the way.
The ongoing month of November 2017 alone, has been a spectacular one in the cryptocurrency’s history. It resulted in over a 55 % increase in its’s value as compared to USD.
Bitcoin smashed through the $6,400 by November 1st and kept on literally rising above all speculations and doubtful analysis.

During an ‘all eyes on me’ kind of last week, Bitcoin kept on consolidating its trading value around a weekly mean of $9,100, then powerfully took off in the last 48 hours.

 

Bitcoin
Total Bitcoin’s Market Cap (blue curve) and Price evolution as compared to USD (green), in a one-year-long period. Source:.Coinmarketcap.com

Why did this happen?

In the past couple of months, Bitcoin broke through the ceiling due to several factors. The massive trading volumes showed by exchanges, (increasing on a daily basis) explains a big deal of today’s milestone. The Coin Telegraph explains that the fear of missing out (FOMO) keeps on bringing new investors in rapidly.

On the other hand, Bitcoin profited from a growing mainstream adoption, a growing global recognition, and the cancellation of the scaling proposal SegWit2X. All of this led to an even increased confidence around the cryptocurrency.

Cited by The Guardian, Neil Wilson, a senior market analyst at ETX Capital, said: “[…] The market cap of Bitcoin now exceeds that of IBM, Disney [or] McDonald’s”.

According to CNBC, besides retail investors, several hedge funds decided lately to include the digital currency in their portfolios.

Bitcoin has also gone viral due to the extensive media coverage. In the span of the past two months mainstream media outlets literally mentioned it on a daily basis.

The endorsement shown by reality TV shows and international stars, from Paris Hilton all the way to Floyd Mayweather, who all tweeted their support to Bitcoin, was the cherry on top which came to boost further its notoriety and surrounding global consensus.

Each stunning success raises serious doubts

This unregulated Far West kind of market is shrinking; in fact, many countries are working on regulations as we speak, in order to protect their currency from being crushed under the uncontrollably growing weight of Bitcoin. Some Analysts, however, think that it represents no more than a short-term investment opportunity among the financial community.

In an article published by the Dailymail, Economist Nouriel Roubini has described the rise of digital currencies as a “giant speculative bubble” bound to a catastrophic end. 

He thinks that no fundamental reasons can possibly explain the price levels reached by Bitcoin. He added that it’s neither a well-established method of payment nor a good way to store capital, that Bitcoin turns out to feed on itself.

Our verdict

If we leave all speculations and polarized opinions aside, it has become an undisputed evidence that there will be no going back from what cryptocurrencies established to this day.

The global community from all four corners of the world is increasingly embracing Bitcoin for several reasons. This urge is fueled by the inherent thrust of becoming rich overnight, a fantasy that became true to a certain extent with this ongoing triumph of currency.

Bitcoin gave voice to the inner rebel inside each one of us, which wants to shout a loud “Screw you !” to white-collar bankers, the ones making people’s lives tougher with their regulations and exorbitant imposed fees on the most meaningless transaction one would engage.

Wasn’t decentralize, redistribute wealth, protect privacy and human dignity and take down the banking lobby, the very reasons behind digital currencies concept?

Now it is on, the giant that is Bitcoin is in action. It is gaining momentum by the days, with no signs of slowing down or retreat. Bitcoin is getting its strength from the hopes of common individuals from all walks of life, united around one purpose: giving back power to the ones how gave it away in the first place. 

A manna from heaven to some, a nightmare to others, and a fraud to the skeptics. Bitcoin will certainly cause much ink to flow in the next years to come.

About Malek Mezni 11 Articles

A Crypto Market Analyst, and Bitcoin enthusiast, Malek is also a double Master’s Degree holder, his most recent one being from a US Top College in Petroleum Engineering.
Malek worked as an Engineer for a Major E&P, and started showing interest in cryptocurrencies just recently, impressed by the huge potential of both the concept and the technology underlying it.

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