It happened. One bitcoin is now worth $10,000.
The milestone was hit on international exchanges earlier in the day (where prices are normally a few percent higher) and was just crossed on U.S exchanges like Coinbase and Gemini a few minutes ago.
This $10,000 marks a bull rally essentially never before seen in modern financial markets. For perspective, bitcoin is now up 1,258% over the past year, with the cumulative value of all cryptocurrencies up 2,174% to a total of $316B. Bitcoin alone currently represents about 54% of this total market cap.
It’s a strange time in bitcoin land. There’s never been an asset, with the exception possibly being Tulips, that’s risen so much in such a short amount of time. So without any precedent or way to assign a “book value” to the currency, no one really knows what to think or do.
Some say this is the nascent start of a trillion dollar industry and the biggest thing to happen in technology since the internet was invented. Some think that bitcoin will replace gold and U.S dollars and every monetary instrument in between. Yet others say that this is the biggest speculatory bubble the world has ever seen, and that bitcoin will crash to zero tomorrow.
And of course there’s the majority of us who think something in between, or really just don’t know what to think. It’s hard enough to predict how technology will develop, and even harder when you add the emotions attached with trying to independently value and assess a tradable, liquid asset like bitcoin.
So the question likely on your mind right now…what’s next?
No one knows. Even the most passionate cryptocurrency believers admit that we’re very likely in a bubble, and that some type of correction will happen. Of course no one knows if this will be a 20% or 2,000% correction, or if it will even happen at all. But don’t be surprised if it eventually happens on some scale.
But despite the fact most of us can’t open Twitter or turn on CNBC without hearing about bitcoin, it’s adoption is still relatively small. Many Americans still have no idea what a bitcoin is, what it does or how to purchase one. The same goes for Wall Street, and even though there have been over 100 cryptocurrency-focused hedge funds opened in the last year many institutional investors still haven’t take a stake in bitcoin.
So this could just be the beginning. Or the end. Either way, this milestone is a perfect time to step back and look just how crazy the last year has been in the world of cryptocurrencies.