Cryptocurrencies are back in the headlines again this week after news that Bitcoin values are soaring. Bitcoin values first began to rise several months ago, and have continued to do so, largely unfettered. As of Friday, November 3, the cryptocurrency had blown past $7,000 per coin, surprising even experts who expected the value to rise sharply.
Credit Suisse CEO Tidjane Thiam explained the situation in an interview with CNBC. “From what we can identify, the only reason today to buy or sell bitcoin is to make money, which is the very definition of speculation and the very definition of a bubble.” That said, Bitcoin values have largely continued to rise over time, rather than falling – making the currency at least somewhat attractive to investors.
Key Bitcoin Facts
- Bitcoin is not new; Satoshi Nakamoto first created the cryptocurrency in 2009.
- Sharp value increases over the last few years have been tied to everything from corporate adoption of the currency to organized crime and even tax evasion in China.
- Bitcoin represents a potentially viable alternative to traditional resources like the Dollar or Yen.
- As of Friday, November 3, Bitcoin values had risen to a record-breaking $7,400. Values continue to rise, prompting many people to look into investing now.
- A small number of experts believe that Bitcoin’s value increase may be a sign that the cryptocurrency is finally going mainstream. Others have declared that it “can’t be a currency” because it isn’t represented by any official organization or government.
What, if anything, stops you from investing in cryptocurrencies?