Published: Fri, October 13, 2017
Finance | By Loren Pratt

Bitcoin Surges Past $5000 Dollars to Establish New All-Time High

Bitcoin Surges Past $5000 Dollars to Establish New All-Time High

Bitcoin surged on Thursday morning, blowing past $5,000 for the first time and setting a new record price above $5,200. If Bitcoin were a company it would rank 77th in Price Water House Coopers list of the global top 100 companies by market capitalization. The Ethereum to Dollars exchange rate advanced 1.74% to $307.16, which is not a bad showing, but the Ethereum to Bitcoin rate dropped 6.76% in the same window.What does that tell you?It says that investors are moving money into Bitcoin and out of Ethereum. The Bitcoin community faces ongoing acrimony over how to scale the Bitcoin network. One factor may simply be that the blockchain bubble hasn't run its course. But what is slightly less intuitive is that those supporting Bitcoin2X have to buy the currency as well.

Bitcoin tumbled below $4 000 last month after China's central bank stepped up regulations on digital currencies, banning initial coin offerings, a popular means of fundraising for startups. Legal and logistical barriers make it hard to sell a newly created cryptocurrency for conventional currencies like dollars or euros.

In the case of Ethereum, the Korean won has become prevalent as rules that limit access to more traditional assets are driving Korean investors to mine and trade the second-biggest cryptocurrency. The current price action brings bitcoin's gains for 2017 well in excess of 400%. Anyone who owned one Bitcoin before the fork owned one Bitcoin after the fork and one unit of Bitcoin Cash. In fact, it might make holders of existing Bitcoins richer. The bitcoin exchange will gradually expand this feature to customers with US bank accounts, enabling them to place orders of up to $25,000 once they have completed all verification requirements. Whatever might be the reason, it's interesting to see Bitcoin's journey. For example, rumors circulated last week that Goldman Sachs was preparing to open a "Bitcoin desk" for trading cryptocurrency.

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