BITCOIN ZOOMS PAST US$11,000 TRIGGERING FEARS OF A BUBBLE ABOUT TO BURST IN ‘SPECTACULAR FASHION’

LONDON/NEW YORK Bitcoin zoomed past US$11,000 (RM45,160) to hit a record high for the sixth day in a row yesterday after gaining more than US$1,000 in just 12 hours, stoking concerns that a rapidly swelling bubble could be set to burst in spectacular fashion.

After soaring more than 1,000% since the start of the year, bitcoin rose as much as 15% yesterday.

It topped US$10,000 for the first time in early Asia trading, before surging above US$11,000 less than 12 hours later to reach US$11,395 on Luxembourg-based Bitstamp, one of the largest and most liquid cryptocurrency exchanges, and then dipping back below US$11,000.

“What’s happening right now has nothing to do with bitcoin’s functionality as a currency – this is pure mania that’s taken hold,” said Garrick Hileman, a research fellow at the University of Cambridge’s Judge Business School. “This is very much a bubble that will very much correct itself at some point and people need to be very careful.”

– Reuters

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