The milestone was hit on international exchanges earlier in the day where prices were normally a few percent higher and was just crossed on U.S exchanges like Livecoin, Coinbase and Gemini.
This comes two days after bitcoin hit $9,000, and eight days after it crossed $8,000.
This $10,000 marks a bull rally essentially never before seen in modern financial markets. For perspective, bitcoin is now up 1,258% over the past year, with the cumulative value of all crypto currencies up 2,174% to a total of $316B. Bitcoin alone currently represents about 54% of this total market cap.
It’s a strange time in bitcoin market. There’s never been an asset that has risen so much in such a short amount of time. So without any precedent or way to assign a “book value” to the currency, no one really knows what to think or do.
Some say this is the nascent start of a trillion dollar industry and the biggest thing to happen in technology since the internet was invented. Some think that bitcoin will replace gold and U.S dollars and every monetary instrument in between (Triffen Paradox Theory). Yet others say that this is the biggest speculated bubble the world has ever seen, and that bitcoin will crash to zero tomorrow.
And of course there’s the majority of us who think something in between, or really just don’t know what to think. It’s hard enough to predict how technology will develop, and even harder when you add the emotions attached with trying to independently value and assess a tradable, liquid asset like Bitcoin.
So the BIG question likely on your mind right now is …what’s next?
No one knows. Even the most passionate crypto currency believers admit that we’re very likely in a bubble, and that some type of correction will happen. Of course no one knows if this will be a 20% or 2,000% correction, or if it will even happen at all. But don’t be surprised if it eventually happens on some scale.
But despite the fact most of us can’t open Twitter or turn on CNBC without hearing about bitcoin, it’s adoption is still relatively small. Many Americans still have no idea what a bitcoin is, what it does or how to purchase one. The same goes for Wall Street, and even though there have been over 100 crypto currency-focused hedge funds opened in the last year many institutional investors still haven’t take a stake in Bitcoin.
So this could just be the beginning OR the end. Either way, this milestone is a perfect time to step back and look just how crazy the last year has been in the world of crypto currencies.
Featured Image: Huffington Post/Bitcoin