Which way now as Bitcoin hits unheard of heights

After strong trading over the past few days, the Bitcoin virtual currency has hit an all time high, with even higher prices forecast.

Japanese, South Korean and USA traders are being held responsible for Bitcoin’s record high of $6,307. 73, with many expecting more increases but a few warning the trend may have a short lifespan. Yesterday’s price is up by 500 per cent on a year-to-year basis, but investors are wondering when speculative interest in the volatile virtual currency will go into reverse.

The value of a single Bitcoin is now three times higher than one ounce of gold, but fears are surfacing that the mercurial rise seen recently may well be shortlived. Even since its inception as the ‘currency of the internet’ in 2009, there’s been a struggle to legitimise the controversial currency as well as a good deal of badmouthing of those who use it.

Favourite accusations include its possible usage by terrorists, drug dealers and other criminals, and its reputation was sullied still further after articles linked it with money-laundering. Secret transactions in the internet’s netherworld and the dark web lost the currency any chance of ever being accepted in its original format, Its present-day weakness is that no government or central bank is prepared to support it as a legitimate method of payment. Some compare it with the South African Krugerrand, calling it an investment rather than regarding it as serious money.

Several more cryptocurrencies are now lurking and attempting to stir up as much interest as had the Bitcoin on its inception. Ripple and Ethereum are the two largest, with total market capitalisation of all three of just $110 billion – the value of one of the planet’s top footballers. At the same time, various countries are looking into the Bitcoin’s dodgy uses as well as its possibilities.

For example, Japan is legislating the forcing of Bitcoin exchanges to hand over their customer lists, and the UK, USA and China have banned coin offerings due to a series of major frauds. The combination of anti-secrecy legislation plus attempts by the world’s major banks to replicate the Bitcoin blockchain and use it to protect online transactions is likely to result in the eventual demise of the coin.

Its going may well be regretted not only by those who’ve used it for nefarious purposed, but also by those who welcomed it as a way to avoid being scammed by world banks. Expats have found it useful when their country of residence has blocked their attempts to repatriate their legitimate savings or are charging usurious amounts for the privilege.