As of today (Oct. 31), every Bitcoin will be worth approximately$6,125, according to reports from Bloomberg. The value of the digital currency has hit new highs after exceeding the $5,000 and $6,000 price points for the first times earlier this month.
In total, Bitcoin is worth more than $100 billion, meaning more than half of cryptocurrency is comprised of Bitcoin.
Cryptocurrencies have been largely immune to increasing regulation by governments and to criticism by members of traditional financial institutions. Initial coin offerings (ICOs), however, have earned more than $3 billion in investments in 2017 despite repeated warnings from various governmental bodies.
The second most valuable cryptocurrency, ether, saw its value climb 8 percent in the last week, a larger gain than Bitcoin's 4.8 percent growth during the same period. These gains follow a warning from technologies, graphics and server processors provider Advanced Micro Devices Inc. (AMD). The company produces hardware that some users purchase to mine ether.
“In terms of the headwinds, we have the semi-custom seasonality and we’re also predicting that there will be some leveling-off of some of the cryptocurrency demand,” said Lisa Su, CEO of Advanced Micro Devices.
Morgan Stanley downgraded AMD stock on Monday (Oct. 30), indicating the number of chip sales to cryptocurrency miners would slow down in the future.
“We believe that the cryptocurrency mining demand should fade in the coming quarters, similar to what AMD indicated on its conference call,” wrote Morgan Stanley analyst Joseph Moore. “We think this creates a large hole for the company next year.”
Bitcoin has long-term associations with criminal activity on the internet, and some have referred to it as a speculative bubble. Despite at least one analyst comparing it to Enron, the currency’s value has continued to soar throughout the year.