Bitcoin Value May Soon Reach $13000: A New Record In A Meteoric Climb

Bitcoin Value May Soon Reach $13000: A New Record In A Meteoric Climb

After reaching $10000 a coin just a week ago, bitcoin value is now approaching $13000 a coin as of Wednesday morning, after breaking through a new milestone on Tuesday.

On a bullish night of trading, the virtual soared to over $12000 and the bitcoin value shows no sign of slowing down. By 6:36 A.M EST on Wednesday, the cryptocurrency was trading up almost 9% against the US dollar at $12768 per coin.

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Bitcoin Futures

In an exchange with Business Insider, John Spallanzani, the chief macro strategist at financial organization CFI Group, suggested that the reason for the sudden boom in value was trading activity in Asia.

“Bitcoin continues to have a strong bid during Asia trading as emerging market currencies are being sold to buy, pushing us above another milestone.”

This new record-breaking value comes ahead of new bitcoin futures contracts by major US exchanges Cboe Global Markets and rival CME Group. With Cboe Global launching the futures on Sunday and CME aiming for a later December release, the path for bitcoin value to continue to advance looks pretty clear. Bitcoin futures will allow investors to bet on the future price of the coin, and are a telling sign that this cryptocurrency is now a mature investment opportunity.

Futures are also great because they may help smooth out the rapid price swings that have left investors anxious. In an interview with Bloomberg, University of Houston Business Professor Craig Pirrong explained a little bit about how these futures might affect the future of bitcoin value.

“Having this instrument that makes it easier to short might keep the bitcoin price a little closer to reality.”

Bearish investors are extremely excited about the new opportunities that bitcoin futures might offer. Currently, borrowing bitcoins to short them physically is an expensive and difficult process. This new rollout will make the process much more convenient and much less expensive, which should allow investors to treat bitcoin like a more traditional currency.

While recent history shows that buying bitcoins was a good idea, there are still inherent issues with the idea of bitcoins that these new futures hope to address. In their current incarnation, you have to own bitcoin physically, which is rather annoying for traditional investors. If you store your bitcoin virtually, you have to worry about getting them hacked or stolen. If you store them physically, they’d have to be stored in some sort of cold storage, which makes them inconvenient to quickly trade.

However, the opinion on the consistent growth of bitcoin value and the viability of its long-term success as a legitimate currency leaves the population divided. Lou Kerner, a partner at Flight VC who invests in the cryptocurrency, stated that “Some see the bitcoin market as “one of the greatest shorting opportunities ever…You have a lot of zealotry, and a lot of people, including me, who think it’s the greatest thing to ever happen in the history of mankind. You have a lot of people who think it’s a bubble and a Ponzi scheme. It turns out both of them can’t be right.”

Will Bitcoin Burst?

If there’s one thing that’s certain, it’s that this level of success for a virtual currency is unprecedented, and the future is all but guaranteed. As investors trek into uncharted waters, there’s no telling what exactly will happen with this unique take on an investment opportunity. The rollout of futures should help stabilize the bitcoin value, but as such a new form of currency that’s currently going through so many changes, it’s anything but a sure thing.

Still, it seems like a good time to take advantage of the rapid climb. While it’s too late to get in on the ground floor, it’s likely that bitcoin will continue to rise in value — at least to a certain point. Investment clients of the bank Goldman Sachs appear bullish regarding the currency, estimating that it will soon soar as high as $15000. And if how rapid this recent boom in bitcoin value has been is any indication, it could reach that mark extremely quickly. If you have the money to invest in a bitcoin or two, now might be a good time to take a closer look at what this cryptocurrency has to offer.

If bitcoin continues to climb, it will continue to be one of the best performing currencies on the market. If there’s one thing that’s pretty certain, the addition of the new futures from Cboe Global Markets and CME Group should make fluctuations in bitcoin value much less drastic and scary. As the currency gains stability, it will likely attract a bevy of more traditional investors who are currently skeptical of bitcoin’s staying power. Whether bitcoin is a ponzi scheme that’s about to burst, or a legitimate investment with a surprisingly rapid climb in value, remains to be seen. Either way, bitcoins are getting seriously expensive and have solidified themselves as a modern investment marvel.

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