Bitcoin one year ago was trading at $733, today Bitcoin is over $7000, an increase of more than 860% in 12 months.
source – Cryptocompare
Numerous questions arise as to the resilience of Bitcoin and why the price is driving towards new highs, some predicting from $10,000 by end of 2017 to the prediction of $27,000 in a few months time by Trace Meyer.
As reported by bitcoin.com, Economist Jeffrey Tucker believes that Bitcoin will not be controlled or limited by governments. Tucker says “Bitcoin is the application of free-market principles to money in the digital age. It is the alternative to centralized government control,” says Tucker. “It is the replacement of an old technology with a technology that is connected to the lives of real people…. Governments will try to hold it back, but this is a hopeless battle in the long run.”
Bitcoin may be impossible to regulate however, enterprises are not. Various countries are regulating Bitcoin Enterprises in a move to have more oversight of the cryptocurrency – USA, Japan, Switzerland, China, India, South Korea, Malta to name a few. Regulation will encourage more investment from institutions as well as individuals.
One of the biggest drivers over the past while could well be the CME (Chicago Mercantile Exchange Inc) announcement of the launch of futures for digital currency which is planned for the end of the year. The growth of bitcoin derivatives, yet another step towards Bitcoin becoming a more established asset class.
The Winklevoss twins, touted as Bitcoin Billionaires, continue to be relentless in their quest to list the first Bitcoin ETF. The SEC refused the first attempt citing a lack of regulation in the bitcoin market, but the agency agreed to a review at a later stage. Gemini, owned by Cameron and Tyler Winklevoss, provides CBOE with market data for the creation of new indices. Press Release
The graph below from Bloomberg shows the rally in days.
However, Japan appears to be leading adoption of Bitcoin after they legalized the cryptocurrency as a payment system on 1 April 2017. The Yen continues to be the currency dominating traded volume daily with Hong Kong based Bitfinex being the dominant exchange. See graph below.
Is this volume and price surge sustainable? Can Bitcoin stay at these levels? Bitcoin has been pronounced “DEAD” hundreds times, however, Bitcoin continues to grow as a store of value and payment system. As per the graph below, Bitcoin reached $7274 only to drop sharply by $300 within an hour – we are sure to see more volatility as this cryptocurrency roller coaster.
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