Bitcoin, the world's largest cryptocurrency, has just reached a new all-time high at $9,891.62 on Nov. 27.
According to CoinDesk's Bitcoin Price Index, this was after the bitcoin-U.S. dollar exchange rate broke a series of records in the past few days -- surpassing $9,000 for the first time over the weekend and breaking the $8,000 mark just a week before.
The virtual currency has had a strong run in the past couple of months, when it first broke the $5,000 barrier, after starting the year at just $1,000. This also makes the cryptocurrency 800 percent more than it was this time last year.
Trading rose to $5.4 billion on Sunday, making it the highest volume since Nov. 13. Analysts have no doubt that it will soon surpass the $10,000 mark.
According to reports, this makes bitcoin seven times the worth of an ounce of gold, with a market cap now higher than international companies IBM, Mconald's, and Disney.
The spike was mainly caused by an announcement from the Chicago Mercantile Exchange (CME) that it will launch bitcoin futures come December.
With 16.7 million bitcoin units in circulation, this puts the cryptocurrency's total value at $160 billion.
"The legitimacy this gives bitcoin as a tradeable asset is very important," said Neil Wilson, senior market analyst at ETX Capital.
However, he also warns of possible problems for bitcoin owners. "Rather than a commodity or currency, bitcoin is like owning stock in a company that will only ever issue 21 million shares and never pay a penny in dividends."
Founded by Japanese Satoshi Nakamoto in 2009, bitcoin has no intrinsic value, except maybe in Japan, where it has been legalized as a valid payment method. According to Wilson, the huge spike in the past couple of months is nothing but a "giant speculative bubble."
It is also worth noting that bitcoin rates fluctuate wildly. Just last September, it plunged below $3,000 after a Chinese crackdown on the cryptocurrency. The European Securities and Markets Authority has earlier notified the public that investing in initial coin offerings (ICO) like bitcoin is "very risky and highly speculative."
