The cryptocurrency is on the run and this time bitcoin price crossed $10,000 mark. The massive USD to bitcoin increase startles the conventional investment wisdom. The bitcoin value, which was hovering under $1000 now goes ten times over.
Probable Reasons Behind 900% Bitcoin Price Increase
The weighted average value suggests an increase of 9 times in price. The early bird investors are surely getting the most ROI. Despite conventional wisdom, investors considering it as speculation, it is reeling in money for the ones who still back it. There are still issues relating to its legal standing that cast shadow on its future.
“No one can forget JP Morgan’s CEO terming the cryptocurrency as FRAUD.”
What’s Driving Bitcoin Price This Time Around?
Many factors are influencing the increase in the value of the cryptocurrency. Chicago Mercantile Exchange announced its plans to offer investors the opportunity to invest in bitcoin futures. Many believe the recent surge in BTC price is due to the new investors getting onboard, who thought of missing a golden investment opportunity.
We can see a massive increase in interest in Google Trends from around the world. The global attraction of this cryptocurrency makes it an ideal commodity for investment.
Split of the Currency into Two
The original version of the bitcoin had a transaction capacity limitation. However, there was a split of the block into two, bitcoin and bitcoin cash. The new spin-off offers greater transaction capacity, thus fulfilling the increase in demand for the digital currency.
Macro Environmental Factors Impacting Growth of Bitcoin Price
An event here or there cannot help grow the cryptocurrency. Numerous other factors count in for influencing the surge in its demand.
Two countries are at the top of the list when it comes to extending legal support to digital currency. Japan and Australia are making amends to their laws to facilitate their citizens in using the digital money. Australia will reduce the double taxation so that its citizens do not have to pay any extra charge. Japan is already accepting it as a legal tender, thus improving its acceptability as a medium of exchange.
Increased Interest from Developing Countries
Many countries in Africa and other developing parts of the world are struggling economically. Therefore, their citizens are continuously facing massive devaluation of the local currency. Thus, they want to find a way to invest their money into something which would retain its intrinsic value. Similarly, the central bank of any of these countries does not have any control over supply and demand of digital money.
Asian Countries Keen for the Cryptocurrency
We know how strictly China rules its banking and financial systems. South Korea and China both did not want the digital currency to get into the hands of their citizens. However, it is due to this barring that is garnering more interest from the investors in these countries. Similarly, like Japan, investors in many other Asian nations show strong desire to invest in bitcoin.
Bitcoin Becomes Media Highlight
Historically, nothing comes close to the returns that bitcoin offers to the investors. Therefore, the international news media is taking a deep interest in the digital currency. Wall Street Journal and other publications have written on it, and hence it has become a mainstream topic.