Bitcoin Continues Assault on All-Time High
Bitcoin, the crypto-currency that has been labelled revolutionary by some and a Ponzi scheme by others, has eclipsed the $1,000 USD mark for the first time in over three years.
Over the past year and a half or so, Bitcoin has been one of the world's best performing assets, trading from the mid $200s to a current level of over $1,000. The crypto-currency has gone parabolic as of late, helped by situations in India and the United States.
In late 2013, Bitcoin went parabolic as well, trading well over $1,000 per coin before crashing back down to earth. Ask people who closely follow the currency and they will tell you that this current move is a great deal more solid, given the increased demand for the coin throughout the world.
As mentioned, a number of factors have contributed to the rise of the decentralized crypto-currency over the past year or so, including:
1) The election of Donald Trump
2) The decision by India to take some of their currency out of circulation
3) The continued devaluation of the yuan
4) Hyperinflation in countries such as Venezuela
With the world on high alert right now thanks to a number of different issues, many are choosing to put at least some of their fiat currency into cryptocurrencies such as Bitcoin.
To many, Bitcoin is seen as being a better store of value than fiat currency or other assets, especially in countries such as Venezuela, where currency is losing value at a remarkable rate.
The anonymous nature of the currency is appealing to those who reside in countries where asset seizures are a real possibility - wallets can be kept anywhere, including on pieces of papers or in "cold storage" (offline computers). To many, Bitcoins represent a much safer way of storing assets compared to fiat currency.
Where does Bitcoin go from here? It depends on who you ask, of course.
Some believe that the price of a single Bitcoin may rise to over $10,000, based on their relative scarcity (there is a hard cap on the number of Bitcoins that will become available) and growing demand across the world.
Others, on the other hand, believe that the coins have little to no value and are ripe for another crash.
Given the recent events that the world has witnessed, I wouldn't bet on the latter taking place anytime soon.
Filed under: General Knowledge