Bitcoin price surpasses gold for the first time, reaching $1,242, with an annual increase of more than 7,600%

Bitcoin is like riding a rocket, and its rise continues to challenge everyone's nerves. Yesterday, the trading price of Bitcoin on the popular exchange Mt.Gox hit a record high of $1,242. At the same time, the price of gold was $1,241.98 per ounce. The price of Bitcoin exceeded that of gold for the first time.

Soaring

Annual increase of more than 7,600%

As of early November this year, there are nearly 12 million bitcoins in existence, and by 2140, a total of 21 million bitcoins will be "unearthed." Due to its scarcity, Bitcoin has become the hottest topic nowadays.

Wind data shows that in mid-November, Bitcoin returned to people's attention with a strong rise of nearly $100 a day. It reached a peak of $800 on November 19, fell slightly for a few days, and then broke through $1,100 on November 27, and finally broke through $1,200. Since the beginning of this year, Bitcoin has risen by more than 7,600%.

Concerns

The most feared thing is a flash in the pan

Guo Tianyong, professor of finance at the Central University of Finance and Economics, said: "Bitcoin can be said to be a trading product. It can be counted as currency or a commodity. Whether it is a normal trading demand, a collection preference, or a commodity investment, the existence of this demand is understandable." He believes that the scarcity of Bitcoin and the influence of quantitative easing policies of some economic systems have contributed to the crazy rise of Bitcoin to a certain extent.

In fact, Bitcoin has not always been soaring. The world's largest digital currency once depreciated by one-third in a few days due to its connection with criminal activities such as drug trafficking.

Guo Tianyong said that consumers need to be reminded that once currency moves beyond commodity currency, its value is determined by people's concepts. When people feel that it has no value, the price of Bitcoin is likely to be worthless. When paying attention to Bitcoin, one should avoid doing so for the purpose of making huge profits.

remind

High risk for speculators

Yi Gang, deputy governor of the People's Bank of China, previously stated at a forum when he first talked about Bitcoin that from the perspective of the People's Bank of China, it is impossible to recognize the legality of Bitcoin in the near future.

Some industry insiders believe that no matter how crazy a product that is not recognized by the state is, it will only be a flash in the pan. Moreover, Bitcoin does not touch the core value of the interests of the global economy, nor does it necessarily promote economic development. Bitcoin is just a virtual product. Although the output is fixed and it meets the rare attribute, when the dealer's hype ends, the price of Bitcoin will inevitably plummet.

In addition, although Bitcoin has been rising rapidly, there are no price limits and trading is open all day. If the server goes down, Bitcoin holders will only be left with a string of binary code. At the same time, this virtual asset lacks physical existence and is extremely fragile. If the trust of the issuer goes bankrupt or is stopped, the digital Bitcoin will continue to depreciate.