Since inception, the value of Bitcoin has risen against all odds.
Bitcoin, the world’s most popular cryptocurrency is at an all-time high after passing the threshold of $ 2000 per coin for the first time. This detail is according to digital coin platforms, Coinbase or Kraken. This record threshold has placed the total market cap of bitcoin — the total number of coins in circulation — at $32.92 billion.
This new remarkable run by the digital currency, bitcoin is nothing like it has experienced before as it soars nearly 65% in the last month.
Bitcoin has been on a tear this year, as this chart from Coindesk shows
The meteoric rise of the value of Bitcoin was noticed in 2013 when the popular cryptocurrency hit the $1000 mark, but due to numerous factors like the falling of top exchange Mount Gox, bitcoin continued to crawl in the hundreds — which saw the currency drop in value.
Bitcoin and other block chain-based services later gained momentum due to the support of financial institutions around the world and found a workaround on its process in China -which made it return to the $1000 mark again late last year- Since then, its valuation has had consistent boost through 2017, which has made users with large bitcoins earn some figures.
So what’s behind the latest surge of bitcoin price?
The Future of currency seems to be digital.
Analysts are of the opinion that this could spur significant attention from the media and force much major financial media outlets to cover the digital currency.
Some might argue that bitcoin has gained enough traction due to its use for illegal transactions. The recently launched cyber assault, called WannaCry which infected more than 300,000 computers in more than 150 countries in the world made use of the anonymous currency in a way to receive ransoms of more than 200 bitcoins (200 * 2000) to return encrypted data to various owners.
Investors and traders are getting more interested.
Another great reason for the sharp price rise of bitcoin over the months has been the interests of investors and traders. Popular digital coin platforms, Kraken and Poloniex announced earlier this month that they expect to see a surge in transaction activity using the digital currency.
Kraken, also indicated that trading volume across all digital assets has passed the $178m mark, setting an all-time high and beating the prior record by 25%.
Influence of the Japanese and Chinese communities.
Another influential factor in the sudden rise in the Japanese community after the country formally accepted bitcoin as a legal method of payment as from April 1st. The country’s lawmakers enacted legislation that both classified the concurrency as a type of prepaid payment instrument and also caused it to fall under anti-money laundering and know-your-customer rules.
The Japanese yen is known to be the single largest currency been exchanged for bitcoin at a 42% of the total exchange made for bitcoin in the world. The U.S dollars follows closely at a 29% of total flow of money.
Also in China the country has long fought against the use of bitcoin, but in recent times it appears to have soften its approach to the digital currency thereby causing a big drop in the difference in bitcoin prices between U.S. and Chinese exchanges.
The media caused hype cycle.
If you have followed bitcoin, you should notice it is prone to spectacular crashes, which in turn catches the media attention, and automatically draw the attention of investors who helped inflate the price. Just like what’s happening now the media also help in determine the price of bitcoin. Social media is buzzing about it.
Also published on Medium.