Bitcoin is a hot topic recently. The Bitcoin price reached a historical high of over USD 2,700 on May 25th. This was a 180% year-on-year increase. Speculations are blooming around the subject.
However, the certainty is that for those who made $10 investment in bitcoin in 2010, they now would have $7.5 million.
Let’s review facts first. Then, talk about the reasons for Bitcoin behavior.
- Satoshi Nakamoto – Bitcoin founder.
- Bitcoin is a cryptocurrency. (A digital currency in which encryption techniques are used to regulate the generation of units of currency. They also verify the transfer of funds. Additionally, they operate independently of a central bank).
- Maximum supply of bitcoin is 21 million.
- It does not pertain to any regulatory institution or country.
- The first transaction made with Bitcoin was May 22nd, 2010. A programmer bought two pizzas worth 10,000 bitcoins.
- In 2010 a bitcoin was worth 0.03 cent.
- On May 25th, 2017, it is worth little over 2,700 dollars.
- Japan passed recently a law that accepts Bitcoins as a legal currency and payment method.
Why is the Bitcoin price going up?
Opinions vary, but it is obvious there is no right answer. Instead, it seems a series of favorable events caused the bitcoin price to go up. This follows the positive, ascending trend noticed for some time now. (Meaning, analysts expect bitcoin price to continue to grow).
From most of the reviews, Japan passing the law on accepting bitcoins has been definitory in raising demand for bitcoins. Currently, more than 40% of bitcoin trade is in Japan and Korea in Yeni.
Some analysts explain that bitcoin price is all about supply and demand.
Let’s consider all of the political uncertainty in the US with Trump, in Europe with Brexit, in Asia with China and with bad loans. Bitcoin can become a “safe haven.” No country regulates it. Additionally, many consider it safe in such times of distress.
However, it is possible that now we see a price bubble. This is a result of economic turbulence and market reaction to events enumerated above. There are the skeptics who expect bitcoin prices to drop even by 50% in the next period. This means around USD 1,500. Additionally, we will witness the so-called “correction” in prices. On another hand, such an event can even be a great time for investment in bitcoins. Either way, in the long run, the positive trend should continue.
Also, if more states would follow Japan’ example on accepting bitcoins, this could make the cryptocurrency an even more attractive investment. It would draw the ones who previously avoided it due to the high risk and price swings.
If there were another major financial crisis, we would see bitcoin prices rising even higher. These are one of the safest investments out there. Bitcoin now is somewhat regarded as “digital gold” by some investors. There are many similarities. They both come from a mining process. (one real, the other simulated). They are both finite. Finally, they are both seen as a store of value.
This is why if you’re like Bitcoin, chances are you may also want to diversify your portfolio with gold. However, turning Bitcoin into gold can be difficult, time-consuming and expensive. That’s why Bullion Exchanges offers a great variety of precious metals bullion and accept Bitcoin as a paying option.
Our ordering service is perfect for those who are looking to buy Gold with Bitcoin.