The Bitcoin price rocketed past US$9,700 this afternoon as the digital currency continues to attract buyers globally as it closes in on the milestone US$10,000 mark.
Some have attributed the gains of around 50% since late October as due to the Chicago Mercantile Exchange's decision to start offering a futures market in bitcoin that is seen as christening bitcoin's place as a tradeable currency of the future.
For example stock exchanges originally came into existence to raise capital and provide a guarantor to settle a trade in the (not uncommon) event that either counterparty to a trade defaulted on their obligations to deliver cash payment or stock.
As such nothing more than trust in the system is needed to provide an asset class or currency legitimacy, after which the fear of missing out (FOMO) trade can send individual asset prices to unheard of levels due to today's digitally inter-connected world.
The blockchain-backed bitcoin then could almost certainly head higher as a fraction of it can be traded for as little as $100 and the majority of today's buyers are betting that someone will be willing to pay more for it after them. However, be warned that if a rush to the exits does come it could see the crypto-currency's price fall back to earth with a bump.
