Bitcoin hits $11,000

By THE DATA TEAM

ALTHOUGH it may defy all reason, it should surprise no one that the price of bitcoin, a cryptocurrency, has just passed $11,000. Bitcoin’s ascent has been dizzying: four days ago it was worth less than $9,000 and a year ago it was worth less than $800. The cryptocurrency has plenty of doubters, including Jamie Dimon, head of JPMorgan Chase, a bank. In September Mr Dimon declared that bitcoin was a “fraud”, and that he would fire any employee found trading the cryptocurrency for being “stupid”. Markets were initially rattled, but have regained their resolve. The price of bitcoin has since risen by around 160%.

Bitcoin’s boosters argue that the currency is valuable because its supply is limited to 21m, a number no central bank can change. But its rapid appreciation should still worry all who hold it. What has changed in the past ten days to suggest that bitcoin should be worth $11,000 rather than, say, $8,000? Bubbles also burst.