The pound is at its best level against the euro since early summer, touching 1.15 on Friday following sufficient progress on Brexit talks late on Thursday night. It also rose across the board: US dollar 1.35, South African Rand 18.6, and its best rate against the Australian dollar for 18 months at 1.80
The other currency that rose this week was Bitcoin which more than doubled in value but what exactly is it? The digital currency is created using a complex process known as ‘mining’ and 3,600 new BTC are made every day but there is limited supply (there will be a cap of 21 million in total) hence the soaring value. Like every other currency, the amount people are willing to pay determines its value.
This time last year the digital currency was trading at USD 768; this week it reached USD 17,000, over 20 times more. It’s not legal tender – you can’t pay your taxes with it or use it to settle debts although you can use it to pay for some things; a house in Notting Hill, London is on the market for 5,000 BTC.
However the price is currently so volatile that it’s more of an investment vehicle at the moment; digital gold or a bubble waiting to burst. Some predict disaster likening it with the Dutch tulip bulbs in the 1630s or the dot com boom while others can see Bitcoin reaching USD 100,000 in 18 months.
Either way, caveat emptor (buyer beware). For euros, pounds and dollars contact a currency broker, for Bitcoin consult your crystal ball!
