Bitcoin Valuation Skyrockets to $5000

Bitcoin Valuation Skyrockets to $5000

One bitcoin is now valued at $5,161 as of 0822 GMT.

Cryptocurrency Bitcoin has reached an all-time high of $5,186. Some exchanges saw the price hit $5,000 for a few minutes in September, but it only lasted for about 10 minutes, making today the first sustained movement past the historic milestone.

Bitcoin's rival ethereum rose 1.93 percent to $307.

The cryptocurrency has increased in value by more than eight percent. But he also warned against imposing "too many barriers", which appears to have given bitcoin a boost. Nettles said interest had been much higher than anticipated and has come from banks, hedge funds and brokers.

The cryptocurrency is highly controversial, with JP Morgan boss Jamie Dimon saying that it was only suitable for drug dealers, murderers and people living in North Korea.

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On Tuesday, Vladimir Putin called for regulations on cryptocurrency, labeling it a "serious risk" used for illegal activity such as money laundering, tax evasion, and funding terrorism.

The soaring value of bitcoin and other cryptocurrencies comes despite growing warnings over a price bubble.

"It is folly to think that bitcoin will ever be allowed to supplant central-bank-issued money", he wrote in The Guardian. It is important to highlight the fact bitcoin could be bought for around $570 just about a year ago.

Unlike a real-world unit such as the U.S. dollar or euro, bitcoin has no central bank and is not backed by any government.

"It is hard to argue that bitcoin does anything better than existing currency arrangements whilst it does some things to a lower standard", Murray added.

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