Bitcoin price soars to record high

Last month, a London property developer, The Collective, said it would allow its tenants to pay their deposits in bitcoin and accept rent payments in the cryptocurrency by the end of the year.

Recent reports that the Chinese government will ease regulations and that Goldman Sachs is exploring how it could help its clients trade cryptocurrencies are now helping sentiment.

But the main factor could simply be demand from investors wanting "in" on a market that has provided gains exceeding those of any other currency in every year bar one since 2010.

"It is worse than tulip bulbs", he said, referring to the infamous "Tulip Mania" of 17th century Europe, echoing sentiments expressed by the former president of the Dutch Central Bank, Nout Wellink, who joked, "at least then you got a tulip".

The soaring value of bitcoin and other cryptocurrencies comes despite growing warnings over a price bubble.

Bitcoin's October rally continued today, enabling the flagship cryptocurrency to finally burst through the $5,000 checkpoint for the first time since briefly touching that mark on September 2.

But after dipping below $3,000 in mid-September, bitcoin has leapt in value by more than 75 percent in four weeks. He noted that historically currencies were backed by precious metals, and these days most currencies were based on macroeconomic fundamentals such as inflation, interest rates and growth, and were backed by a central bank and government. But determining its value is hard. "For bitcoin no such fundamentals exist".

The primary factor driving the bitcoin price's record rally appears to be skepticism that the controversial SegWit2x hard fork will be executed in November, or, that if it is deployed, the resulting blockchain will not be able to compete with the incumbent Bitcoin network.

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