This Friday, the price of a Bitcoin grew once again, reaching another all-time high, of almost $18,000. However, this attracted – once again – new warnings regarding the risks of putting a lot of money into this highly volatile cryptocurrency.
Ever since the start of the year, the price rose more than 1,700 percent, so financial experts and not only keep claiming that it’s just a bubble expected to burst anytime, in the near future. And this happens despite the positive predictions regarding the coin, coming from CME, for example.
A great month for the coin
Just in December, Bitcoin climbed almost 80 percent, says a report from Reuters, reaching a high of $17,900 on Friday, on the Luxembourg-based Bitstamp exchange.Basically, this is the best month for it, ever since December 2013.
However, despite this new reached milestone, trading managed to remain calm these days, compared to previous weeks. As for the main reason that caused Bitcoin to reach this new price, it was mainly the launch of CME Group’s Bitcoin Futures contracts, on Sunday.
“The hope (is) that futures signal the unlocking of institutional money into the digital arena and (that there will be) a rapid demand increase and ratification of the technology and its principles,” said Charles Hayter, Cryptocompare founder.
But why are people still worried?
Outside the cryptocurrency market, the general worry about the amount of money piling into this is constantly growing, Apparently, a recent study revealed that Bitcoin can be considered a real threat to the financial stability of currencies and markets as we all know them.
“Our evidence finds that the price of Bitcoin has been artificially inflated by speculative investment, putting it in a bubble,” said Larisa Yarovaya, a lecturer at Anglia Ruskin University, one of the authors of the report.
On the other side, others consider that the total market size, which is now around $300 billion, is not able to have an impact big enough to affect the overall financial stability.