Welcome to a new kind of currency, or rather, welcome to a new kind of financial system. Today, for the first time ever, Bitcoin surpassed the $6000 barrier, proving that cryptocurrency is, in all likeliness, here to stay.
Bitfinex, which has the highest volume BTC/USD exchange, broke the $6,000 barrier initially. Now, the same can be said for all of the other major exchanges. It has only been a little over a week since the price of bitcoin soared passed $5,300, and then it quickly surpassed $5,800. Now, it has surpassed another barrier.
Ultimately, this surged caused its market capitalization to exceed $100 billion for the first time.
The digital currency is expected to continue rising in price, with cryptocurrency mogul Mike Novogratz predicting that it could hit $10,000 sometime next year and other industry experts saying it will top $25,000 within the next 5 years.
Considering how quickly Bitcoin has risen recently, such predictions may not be impossible...or even unlikely.
That said, Bitcoin isn’t infallible and could eventually collapse. Earlier this month, Harvard professor of economics Kenneth Rogoff claimed that it is only a matter of time before the currency takes a turn for the worse:
“It is one thing for governments to allow small anonymous transactions with virtual currencies; indeed, this would be desirable,” he said in an article that he wrote for MarketWatch. “But it is an entirely different matter for governments to allow large-scale anonymous payments, which would make it extremely difficult to collect taxes or counter criminal activity.”
This year alone, Bitcoin has been impacted by bans and restrictions that were set in countries like China, Russia, and South Korea. It seems, however, that these developments were only minor stumbling blocks for the currency, as Bitcoin has risen by more than 500 percent in value this year alone, and Vladimir Putin subsequently stated that Russia would issue its own cryptocurrency.
Disclosure: Several members of the Futurism team, including the editors of this piece, are personal investors in a number of cryptocurrency markets. Their personal investment perspectives have no impact on editorial content.