Bitcoin price punches through $12,000 reaching new high

Posted Dec 6, 2017 by Ken Hanly
Last night the price of bitcoin shot past the record $12,000 mark for the first time ever. No doubt to the amazement of doomsayers and dismay of short sellers the price went well over that mark.
Bitcoin  whose origins remain a mystery  is a virtual currency that is created from computer code an...
Bitcoin, whose origins remain a mystery, is a virtual currency that is created from computer code and is not backed by any government. The Bitcoin currency was launched in 2009.
Karen Bleier, AFP/File
Bitcoin's recent price
Just before a Coindesk article went to press the price of bitcoin peaked at an astonishing $12,798 well on its way to another thousand dollar leap from $12,000 to $13,000. Bitcoin is the largest cryptocurrency by market capitalization.
The low today was $11,670 so the record represents a gain of $1,128 in less than 24 hours. According to CoinMarketCap, bitcoin's price rose 9.63 percent in 24 hours and double that, 18.74 percent in the last 7 days. Trading volume has expanded slightly over the last day.
Just one year ago one bitcoin was worth $764. Over the year bitcoin has risen by 1,574 percent. Its market cap is now at $219.6 billion.
As I write this at about 11 AM Central Time the price of bitcoin is $12,619 only slightly down from its recent high.
Concerns about bitcoin mining's huge energy consumption
There are growing concerns, especially among some environmentalists, of the huge energy consumption of bitcoin mining. The issue was discussed in a recent Digital Journal article.
It is claimed that bitcoin uses more power than 159 countries including Nigeria and Ireland. A very recent article on the issue can be found in Ars Technica.
Upcoming trade in bitcoin futures may be boosting price
Just recently three bitcoin future exchanges were approved in the US and one will begin later this month. Many argue that this is partly responsible for the recent surge in the price of bitcoin.
This development will open bitcoin to a wider range of investors who will be able to trade bitcoin futures. This could result in a new surge of money into bitcoin.
While this is possible, the derivatives can also be used to make profit as an asset loses value. Investors can bet that bitcoin is overvalued and turn a handsome profit. However, if bitcoin continues on up for some time, they can lose their shirt.
Many expect a correction at any time and others even expect a crash but so far every dip has been followed by another rise and a new record high. Volatility appears likely to continue for a while.
The continuing volatility of bitcoin's price will likely limit its use and acceptance as a currency.