Last month, the price of one bitcoin was about $447 per unit. The same last week, went up to $519 per bitcoin and today it is at around $577. The value of the beloved digital currency has appreciated by about 30 percent in a span of 30 days. On an average, the appreciation of bitcoin currently stands at a bit less than 1 percent a day. None of the conventional assets so far has ever shown this much appreciation so far. Call it currency, commodity or property, it doesn’t matter as the only thing of importance is the fact that bitcoin has turned out to be the most exciting financial instrument of all times, offering great potential for bitcoin users to make profits from its constantly rising prices. If bitcoin follows the same trend, then by the end of this week, we can expect the price to breach the $600 mark, with an effective market capitalization of $9.39 billion.
One of the reasons for an increase in Bitcoin prices is the continuing interest in the digital currency by the Chinese investors. The increased interest follows the increased pressure for a further devaluation of Chinese yuan due to expected Fed rate hike followed by an “outright negative” view of Goldman Sachs on the currency, which may be followed by other banks as well. The capital controls imposed by the Chinese government has got investors looking into bitcoin as an alternative investment opportunity. Bitcoin price increase, is it a good news?
The increasing bitcoin price trend is good news for the Bitcoin network in multiple ways. As upward price trend will elicit a more positive response from traders and investors who will end up trading more bitcoin with the intention of making profits as the price climbs further upwards, which will increase […]
