Bitcoin recently hit $10,000 (£7,400) and many people are wondering if this is a bubble.
On the one hand, $10k is a big round number that in the past has caused the bull to stall. Consider that $1, $10, $100 and $1,000 all saw price corrections. It would be unsurprising to see $10k as an opportunity to pause and reflect.
It’s important to remember that the price of Bitcoin is up 10 times in 2017, and the network behind it has grown 11 times. Given that the price of Bitcoin is directly proportional to the size of its network, the price has slightly lagged the take-up in this new digital asset. At Newscape, we track the fair value of digital assets and the current fair value of Bitcoin is $11,062. So there’s no bubble in my opinion.