Bitcoin is currently the largest digital currency in the world, and if the current price trend is anything to go by, a brilliant future lies ahead for the investors.
Between May 2016 and May 2017, Bitcoin price has seen more than 200% growth. It exceeded the price of an ounce of gold around March and more than doubled over the next few months. The Bitcoin price has recently crossed the $2,000 mark and currently stands at around $2,300, which brings us to the pertinent question, how long will this price surge continue?
Understanding The Reasons Behind The Recent Price Surge
To be able to find an answer to this question, one first needs to understand the reasons behind the rapid rise in Bitcoin price over the past year. Experts believe that the primary reason behind this positive price trend is the recognition of Bitcoin as legal tender in several countries that earlier refused to legalize this cryptocurrency.
Post the recent declaration of Bitcoin as a legal method of payment in Japan, the market has seen a steady rise in investors from the country, which has lead to the growth of the value of Bitcoin. Furthermore, this change is not just restricted to Japan, more and more countries are opening up to the idea of legalizing this digital currency and at present, there are approximately 1,237 Bitcoin ATMs around the globe with the U.S leading the list with a staggering 909 ATMs throughout the country.
This increasing international recognition of Bitcoin as a valuable asset is encouraging more purchases worldwide because investors have begun to see the cryptocurrency as an asset whose value does not depreciate much in the scenario of political instability.
This is why the investors from countries that have witnessed political turmoil in the recent past have possibly contributed to the Bitcoin price rise as well. Bitcoin is making its presence felt on a global scale like never before, with ATMs in countries ranging from the Philippines to Canada and from Australia to Denmark.
The Bitcoin Price Trend - The Road Ahead
Although the price of Bitcoin recently suffered a dip due to the ongoing scaling issues, it seems to have recovered with the emergence of BIP91 as a feasible solution for the problem.
With the members of the Bitcoin community showing their support for this solution as an alternative to the splitting of the blockchain, the Bitcoin price has already risen from an 8-week-low of $1,863 to a way more promising $2,329.
While experts were of the opinion that the forking of the blockchain could have an adverse impact on the price of Bitcoin, they believe that BIP91 is a more reliable solution that can avoid this price dip entirely.
This solution to the Bitcoin scaling problem could mean that Bitcoin future continues to remain promising and the ongoing price surge may not cease anytime soon.
Clubbed with the fact that the blockchain technology has recently gone mainstream and the possibility of more countries legalizing Bitcoin in the coming months and years, the investors are expecting the positive price trend to continue throughout the foreseeable future.
/ R. Darell (@bitrebels)
Sources:
- http://mashable.com/2017/05/22/bitcoin-price-surge/#VVWEZ06TRmqI
- https://coinatmradar.com/countries/
- https://www.statista.com/statistics/343127/number-bitcoin-atms/
- http://fortune.com/2017/05/26/bitcoin-price-3/
- http://www.cnbc.com/2017/07/18/bitcoin-soars-as-miners-move-to-solve-the-digital-currency-scaling-problem.htm
Image: Fortune