Bitcoin on the Rise
CBJ — Bitcoin has reached a new record high, surpassing the US$8,000 level, marking a near 50% increase in just over one week; that’s the equivalent of more than $10,500 Canadian dollars.
U.S. payments company Square Inc. has started to allow select customers to buy and sell bitcoins on its Cash app, which is the main reason for bitcoin’s increased value.
However, there are financial analysts who warn that the market is a bubble and institutional investors are largely staying away.
Retail investors, however, as well as some hedge funds and family offices, are piling into the market. The “market cap” of all crypto-currencies have hit an all-time high of over $242 billion.
Bitcoin is an international digital payment system and was originally released as open-source software about eight years ago. The system is peer to peer with transactions occurring without any official intermediary. Transactions are authenticated by networking software and recorded in a public ledger, known as a blockchain.