Bitcoin Price Escalates non stop
Everyone in the Bitcoin community is looking with wide open eyes and lifted eyebrows.
Two months down the line Bitcoin was $ 1020.00 on 24th March 2017 (see fig below) and as of today it stands at $ 2135. Has any financial instrument on earth or any asset appreciated to this degree? Perhaps it has crossed the wildest dream of Satoshi Nakamoto who could have never imagined where his coined currency could head on and at what rate.
On 1st Jan 2017 Bitcoin had crossed milestone of $1000 (see fig below). On May 20th 2017, Bitcoin reached another landmark of crossing whooping $2000 price. This doubling is in less than 5 months. What could be a better profit yielding option? With this price the Market Capitalization of this Cryptocurrency went up to $32 billion and this has been achieved in just 8 years of its inception.
As we talk today on 23rd May 2017 the price has gone up further to reach $2144, highest ever in the history of Bitcoin. Everyday history is being created. Year 2017 has seen so many records being broken….
- First it crossed $ 1000 around new year,
- It crossed 326000 transactions in a day
- It crossed $ 1 billion worth of trades daily
- Bitcoin hashrate reached a whooping 4.2 exahash per second.
- Got legalized in Japan
With all these record breaking performances, Bitcoin is all set to be the most popular digital currency which people are using to hedge their funds in this dooming global economy.
Why Bitcoin Price Going up
Analysing reasons for this increase, besides the legalization of Bitcoin in Japan and subsequent greater acceptability all over the world, the next biggest reason leading this drastic increase in price is the change in code of another similar digital currency called Litcoin.
Bitcoin was threatened few months back by the possibility of a hard fork formation which could have lead to two blockchains. People feared that a possible hard fork will reduce flexibility of trading their bitcoins on either of blockchains so formed. However similar was the situation with another digital currency Litcoin which has been resolved by changing its code. This change of code is called Segregated Witness (Segwit) resulting in higher speed of transactions.
This has given belief to Bitcoin enthusiasts that such kind of change of code is also possible in Bitcoin which will lead to increase in speed of transactions. Currently speed of bitcoin transactions is reduced due to rules of Bitcoin software which doesn’t allow transactions in a block beyond a certain size. Such soft fork will smoothen Bitcoin transactions leading to more acceptability and usage at POS (points of sale). This in turn gave a high momentum to Bitcoin pricing.