Bitcoin price like never before
In a historic first, bitcoin price has reached over $2000. This surge is the result of a 60% growth in one month. The price of bitcoin (BTC) is roughly $300 higher in South Korea and Japan on average exchanges. For many, this is more than just a financial phenomenon: this broke many psychological barriers for global investors. As a result of this, the recent past of BTC has seen spectacular growth. There are some obvious and non obvious reasons for this to have happened.
International Appeal from the East
China and Japan are the large factors in the recent surge of the price of bitcoin. Recently Japan had declared Bitcoin as a legal form of payment. The Accountings Standard Board of Japan is even considering making standards for cryptocurrencies as forms of transactions. At the same time, China continues its mixed feelings towards Bitcoin. There are various forms of speculations surrounding China’s relation to BTC. Some also claim that China should ban any form of BTC transactions. There are others who claim the Chinese demand for BTC is artificial, and financially fabricated price control. However, recent actions suggest that China is taking a lax approach to transactions.
Global political motion
Recent happenings around the world are also contributing to the price surge of bitcoin. The recent elections in the US and France had created some ground for speculation in the currency exchange markets. The effect of this is also being seen in the cryptocurrency markets. Another example is India. In recent years, the Indian government had banned a large portion of the currency in circulation. Although banned in the country, BTC has become pretty popular in the black markets.
Apart from the hard evidence of the effectiveness of Bitcoin, there is a lot of speculation behind it. There are those who invest in the technology without fully understanding how it works. However, it is also argued that the reason for this increased interest is a natural effect of a currency as “efficient” as bitcoin. The surge of new investors is also proving to be a major factor for the movement of the price of bitcoin.