Bitcoin Soars Above $1,700; Analysts Worried
The price of bitcoin rose above $1,700 Tuesday morning, according to a price index by industry website Coindesk.
With the price so high, analysts are contemplating what risks could scuttle its recent surge.
The digital currency has been rallying significantly in recent weeks. Over one month, the price has increased by 43 percent, according to Coindesk figures. Over one year, the market capitalization for bitcoin has increased massively, from around $7.16 billion in May 2016 to $27.9 billion today. In just the last 24 hours its market capitalization has risen by over $1 billion, according to the website’s price index.
Last summer, bitcoin’s annual rate of supply creation was halved. This was an automatic process, written into bitcoin’s code when it was invented in 2008 to reduce the rate of supply every few years to prevent inflation.
CNBC
