At the beginning of 2017, expectations for Bitcoin were high, but in August prices for cryptocurrency exceeded the brightest forecasts. When I write a bitcoin reached the value of 4800 dollars and for a month it has risen by more than 70%.
Surely Bitcoin and Blockchain are the light that illuminates the path of banking innovation and the payment system of the future but in the course of its history Bitcoin has had to overcome countless cliffs such as general scepticism, the accusation of being a financial bubble, The recent years, however, have been marked by an important change of trend in the way in which the public and, above all, the economic and government worlds have started to deal with this currency.
There are many factors that influence the price of Bitcoin.
For example:
The SegWit update has restored confidence in the currency, as well as in the cryptocurrency market in general, which has reached a new record of $175 billion in capitalization.
Last year China began to adopt a policy that led to the devaluation of the Yuan, this has created a great deal of alarm among Chinese investors who were also prevented from sending their money off-shore. They have therefore begun to invest heavily in Bitcoin as the only way to get their capital out of the Chinese banking system.
In Venezuela, on the other hand, political upheavals and high inflation have dramatically increased the number of Bitcoin users. In a country that has collapsed and where the population is no longer able to buy even the basic necessities, Bitcoins have proved to be a viable alternative for purchasing essential goods and services.
In Russia, Deputy Finance Minister Alexei Moiseev, proposed to reserve crypto-exchange services for qualified investors only, cutting the retail component off. This demonstrates that governments around the world are trying to frame the Bitcoin and other cryptocurrency boom in a clearer regulatory framework.
Ether of the Ethereum platform is also about to reach $400, presumably also thanks to the agreement that founder Vitalik Buterin has recently reached with the Russian bank VEB.
In India. Following the government’s decision to withdraw some of the higher denominations of their banknotes from circulation, investors identified Bitcoin as a form of protection for their savings.
Japan has recognized Bitcoin as a legal form of payment.
In 2017 Bitcoin gave clear evidence of its potential , although price fluctuations will continue to be violent we think that Bitcoin seems to have a bright future ahead of it.