Cryptocurrency Bitcoin surged past the $12,000-mark on Wednesday for the first time as it prepared to take its place on mainstream markets, AFP reported. The currency’s value crossed $12,590 in Asian trade before falling back to $12,567.
The currency had crossed the $10,000-mark for the first time last week.
With this surge, the cryptocurrency’s total market value is about $203 billion – more than twice finance company Goldman Sachs’ market cap, CNBC reported.
While major exchanges such as the Chicago Mercantile Exchange and the Chicago Board Options Exchange have said that they plan to introduce bitcoin futures contracts in their respective exchanges, many financial experts remained wary.
“This is a toxic concept for investors,” Stephen Roach, Yale University senior fellow and one of Wall Street’s most influential economists, told CNBC.
“Bitcoin futures trading on the major stock exchanges would provide more assurance for retail investors that the derivative is trading in a regulatory frame work,” The Guardian quoted Naeem Aslam of trading company Think Markets as saying. “This would provide tail wind for bitcoin.”
However, many analysts such as Australian economist Stephen Koukoulas think people may be actually buying bitcoin as they think someone else will pay more for it in future.