Which cryptocurrencies are you banking on?
In an age where virtual currencies are becoming mainstream, one is starting to see interest in the world of cryptocurrencies.
In fact, it’s almost like Bitcoin is starting a bubble.
But with a twist.
The Bitcoin bubble is now so big that the Bitcoin blockchain, a record of all the transactions in the cryptocurrency, is growing at an alarming rate.
In the last month alone, the number of transactions has more than doubled from around 3,000 per day to over 6,000 a day.
And in the past month, it has risen by 10 per cent, according to data compiled by Bloomberg.
“It’s like a bubble bursting,” said Dan Rometsch, head of crypto investment at CME Group, a brokerage that tracks cryptocurrencies.
“The bitcoin bubble was not a bubble but a bubble burst.
And it’s like it’s getting bigger and bigger.”
The blockchain, also known as the bitcoin blockchain, is a record keeping system that records every bitcoin transaction.
Unlike traditional record keeping, it does not involve a central authority, but instead relies on peer-to-peer networks of computers.
Bitcoin is one of many cryptocurrencies that use this technology.
“Cryptocurrencies are the new gold,” Rometsk said.
“They’re like gold in a sense that you can hold them forever and you don’t have to pay for them.”
While bitcoin has been a popular digital currency, it was created by a group of programmers working for a Chinese online game developer.
“Bitcoin was conceived by a small group of people with no resources, no funding,” said Kevin Ma, a partner at the law firm Akin Gump Strauss Hauer & Harcourt in Toronto.
“There was no infrastructure for it.
It was an idea born out of frustration.”
Bitcoin’s price has grown steadily since the start of the year, hitting a high of $1,150 in mid-January.
It has since fallen back down to around $100, according the CoinDesk Bitcoin Price Index.
In a similar way, Rometski said cryptocurrencies have become a way for people to “cash in on” the exponential growth in the value of a currency.
“You have the digital gold, and then you have the real gold,” he said.
So why are they now being taken so seriously?
In many ways, it all boils down to a “cryptocurrency bubble,” said Scott Senn, a professor of finance at New York University and the author of a book on cryptocurrencies, The Bubble: Inside the World of Crypto.
“In many ways these are the future of money, and they’re the future that we have been talking about,” he told CBC News.
“So the reason that people are so excited about them is because there are so many reasons that people have for wanting to buy them.”
With cryptocurrencies gaining popularity, there are concerns about them being too risky, but not enough regulation, to be regulated.
While there are some regulators who are trying to ban virtual currencies, such as Russia and China, there’s no clear consensus on how to regulate them.
“We have a lot of regulators who think that virtual currencies can be very volatile,” Rietsch said.
But that doesn’t mean people aren’t looking to cash out.
“For me, it is just a great way to diversify my portfolio and to take advantage of a growing market that I have,” Senn said.
It’s also been a boon for Canada, which has been in the midst of a boom in the bitcoin industry and has a significant amount of the cryptocurrency in circulation.
The country has a large number of cryptocurrency exchanges and is the only country that allows its citizens to buy and sell cryptocurrencies.
Bitcoin, meanwhile, has been used to purchase almost $1.3 trillion worth of goods and services in Canada.
Senn believes Canada’s embrace of cryptocurrencies is one reason the country is so well positioned to thrive in the future.
“Canada is a really interesting country because it’s got the technology and infrastructure that’s built for it,” he explained.
“And it’s very entrepreneurial.”