Bitcoin Over $5,000 – Breaks All Time High Despite Russian Regulations
Bitcoin has bounced back from September's slump and has broken the $5,000 barrier despite all the negative news and Russian regulations.
Bitcoin seems to keep coming back stronger after each blow and has finally gone over $5,000 – standing tall at $5,043.62 according to Coinmarketcap at the time of writing.
Such resilience from Bitcoin is a sign of changing times as blockchain-technology takes the center stage at every financial forum and discussion, whether it’s the US Department of State or the International Monetary Fund.
Last month Bitcoin reached an all-time high at around $4,928 before it plunged down in the wake of China’s crackdown on cryptocurrency exchanges and exaggerated criticism from financial bigwigs such as Jamie Dimon.
Following all the drama, Bitcoin kept taking more punches as notable figures called it a bubble. We had Yale Economist Robert Shiller giving Bitcoin’s example as a major bubble:
"The best example right now is bitcoin. And I think that has to do with the motivating quality of the bitcoin story. And I’ve seen it in my students at Yale. You start talking about bitcoin and they’re excited! And I think, what’s so exciting? You have to think like humanities people. What is this bitcoin story?"
Then we saw Ray Dalio, who is leading one of the largest hedge funds in the world, criticizing Bitcoin for volatility:
"It's not an effective storehold of wealth because it has volatility to it, unlike gold. Bitcoin is a highly speculative market. Bitcoin is a bubble."
Mastercard’s CEO, Ajay Banga also joined the bandwagon and called Bitcoin and other non-government backed cryptocurrencies “junk”.
Finally, we saw Russia coming out with news that the government wants to control cryptocurrency mining and circulation.
However, John McAfee hit the nail on the head, saying that Bitcoin frightens governments and central banks:
“Bitcoin and other cryptocurrencies frighten governments, because people who use them...you cannot find out how much money they are making through Bitcoin, what they are buying, what they are selling...and so governments make income by taxing the movement of money...”
Now that Bitcoin has broken the $5,000 psychological barrier, we believe it is going to see new heights – something that was also recently predicted by Michael Novogratz and Peter Schiff – two renowned hedge fund managers.