Why is Bitcoin’s Price so high?

0

Currently price of Bitcoin is trading at a cost of $ 18333.51

Recently the price of Bitcoin has soured to above $ 18333.51 .According to the BPI (Bitcoin Price Index), the price of Bitcoin is trading at a cost of $ 18333.51.But the ultimate question is why the price of Bitcoin is rising too high? Since the start of this year, this crypto currency has already gained the feat of rising to higher than 10,000 in the value. But in spite of the incredible growth of Bitcoin, the analysts are still quite apprehensive about the token’s inherent volatility .Even two weeks back itself the investors of the Bitcoin took a while when the price of the token jumped to over 20% before it bounced back. Jordan Hiscott who is a chief trader working at ayondo markets – a social trading platform said that the rapid growth of Bitcoin is an indication of the shift in paradigms in the finance world. The technology today is transforming the dynamics of the world of business.

This move of notable uplift in the price of Bitcoin has pushed its market capitalization to higher than $ 200 billion

Through the upward trajectory of the Bitcoin, even the world could see the more of the record prices in the coming times. Since Bitcoin allows the decentralised exchange and therefore all the transactions as well as the transfers are peer to peer. This move of notable uplift in the price of Bitcoin has pushed its market capitalization to higher than $ 200 billion for the first time. The reason why there is a surge in the Bitcoin price is due to the increase in the worldwide demand of the digital money.

Many people are looking at digital currency as gold which is capable of holding its value

Earlier digital currency was seen as just the province of the cranks as well as computer geeks but now it has become the mainstream. The investors are seeing it as a new asset and they are creating million dollars of the hedge funds for its acquisition. Many people are looking at digital currency as gold which is capable of holding its value.

Some people might be buying Bitcoin as a tool for investing in many of more exotic currencies

The political upheaval in US and Brazil has dropped down the dollar rates. This led to the up stick in the buying of Bitcoin. Also the crypto currency will be benefitted in an indirect manner from the recent explosion which is there in the value of other types of digital currencies just like the Lumens, Ethereum and the Litecoin. Although it is quite possible to purchase these currencies with the dollars but it is much simpler to use the Bitcoin. So people might be buying the Bitcoin as a tool for investing in many of the more exotic currencies. The regulators in Japan this year came up with the new rules that are not treating Bitcoin as an outlaw currency but more as the part of their banking system. Even China is getting more tolerant to Bitcoin .Due to all these recent changes more and more investors in these countries are rushing up to swap the yen with Bitcoin.

 

Comments are closed.