Bitcoin has crossed over the $US11,000 mark — briefly — as it continues its whirlwind end to the year. It’s more than welcome news to investors, who are embracing the increasing value of the digital currency, but market analysts are a bit more sceptical. Here’s why some are predicting a bitcoin crash and what would happen if it does. Bitcoin is a type of digital cryptocurrency that first emerged in 2009. The reason why everyone keeps talking about it is because it’s increased tenfold in its value since the beginning of the year, and is currently worth more than $US10,000 after its value more than doubled since the beginning of October. “The bitcoin phenomenon is almost unprecedented,” John Noonan, senior forex analyst at Thomson Noonan, said. In fact, the cryptocurrency’s current market capitalisation — its price multiplied by the number of coins that have been released into the system — is roughly $US214 billion, according to industry website Coinmarketcap. To put that in perspective, that is equivalent to the combined market cap of the Commonwealth Bank (at $140 billion) and National Australia Bank (at $80 billion). Read more here…

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