London, Dec 7 (AFP) Bitcoin ploughed past USD 15,000 to afresh record today, triggering a warning the cryptocurrencywas "like a charging train with no brakes" and prompting freshconcern about its looming launch on mainstream markets.
It struck a new high of USD 15,242.99 around 1030 GMT(1600 IST), according to Bloomberg News.
The rally came just a day after the virtual currency,which has been used to buy everything from an ice cream to apint of beer, hit the USD 12,000 mark for the first time,while it has soared more than 50 per cent in value in just oneweek.
Bitcoin -- which came into being in 2009 as a bit ofencrypted software and has no central bank backing it and nolegal exchange rate -- has risen from a 2017 low of USD 752 inmid-January and surged dramatically in the past month.
The increased interest has been driven by growingacceptance among traditional investors of an innovation onceconsidered the preserve of computer nerds and financialexperts.
But some, including the US Federal Reserve, have warnedagainst dabbling in bitcoin as it could threaten financialstability, and fears of a bubble have increased as the pricehas soared.
"Bitcoin now seems like a charging train with no brakes,"said Shane Chanel, from Sydney-based ASR Wealth Advisers.
"There is an unfathomable amount of new participants pilinginto the cryptocurrency market."But he warned: "Once the hype slows down, we will mostcertainly see some sort of correction."There are mounting concerns about its introduction intothe mainstream financial system after US regulator theCommodity Futures Trading Commission last week cleared the wayfor bitcoin futures to trade on major exchanges, a decisionwhich analysts say has helped spur the recent rally.
Bitcoin is to be offered on the CBOE Futures Exchangefrom this weekend and on the world's biggest futures venue,the Chicago Mercantile Exchange (CME), from December 18.
The Futures Industry Association, which groups some ofthe world's biggest derivatives brokerages, criticised theplans in a letter to the regulator, saying that contracts arebeing rushed through without the risks being properly weighedup.
"A more thorough and considered process would haveallowed for a robust public discussion among clearing memberfirms, exchanges and clearing houses," said the association.
Speaking to Bloomberg TV, Royal Bank of Scotland chairmanHoward Davies called on the Federal Reserve, the EuropeanCentral Bank and the Bank of England to present a co-ordinatedwarning amid concerns this may well be a bubble that couldspectacularly burst.
But "all the authorities can do is put up the sign fromDante's Inferno: 'Abandon hope all ye who enter here'", RBSchief Davies said as he warned that a ban on bitcoin wouldsimply give rise to new digital currency types.
Transactions happen when heavily encrypted codes arepassed across a computer network.
The NiceHash marketplace was meanwhile todayinvestigating a security breach resulting in the theft ofbitcoin.
"Clearly, this is a matter of deep concern and we areworking hard to rectify the matter in the coming days,"NiceHash said in a statement.
"In addition to undertaking our own investigation, theincident has been reported to the relevant authorities and lawenforcement and we are co-operating with them as a matter ofurgency."Bitcoin and other virtual currencies use blockchain,which records transactions that are updated in real time on anonline ledger and maintained by a network of computers.
In 2014 major Tokyo-based bitcoin exchange MtGoxcollapsed after admitting that 850,000 coins - worth aroundUSD 480 million at the time - had disappeared from its vaults.
Bitcoin's use on the underground Silk Road website, whereusers could use it to buy drugs and guns, also raisedsuspicions about the virtual money. (AFP)CPS.
This is unedited, unformatted feed from the Press Trust of India wire.