Virtual currency Bitcoin is at a record high of $9,700 and this takes it to 20% above the level it stood at on Friday 24th November, according to the Luxembourg based Bitcoin exchange, Bitstamp.
It started the year at around $1,000. Virtual currencies are largely unregulated and bypass traditional banking systems. Their growth is of increasing concern to international regulators.
JP Morgan Chase’s chief executive, Jamie Dimon said “it’s just not a real thing, eventually it will be closed.”
Currencies such as Bitcoin use blockchain, which is an online ledger of transactions maintained by a network of anonymous computers on the internet.
They are not backed by any government, nor central bank and therefore there is no-one responsible for backing their value.
We think that this is a highly volatile and risky asset. People should take a great deal of care and understand the risks before opting to buy into Bitcoin.
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