Bitcoin, the world’s first decentralized cryptocurrency is now gaining huge popularity among institutional investors. Bitcoin price is continuously rising and it may reach $2000 (INR 1,28,000*)
*$1=INR64
Bitcoin markets is witnessing positive actions which is leading to mass recognition and adopton fom all parts of the world which is causing Bitcoin prices to soar. Various factors are pushing Bitcoin prices upwards which may reach to $2000.
Recently Bitcoin prices made it’s new all time high at $1463. Previous all time high was $1377.
Well everybody is enjoying the Bitcoin price rally .But this rally is often being questioned and people seriously want’s to know that why Bitcoin prices are rising so much!!!
There are several factors which are affecting Bitcoin Market and in turn Bitcoin prices. These are not just factors but also serious events that will form, an important part of Bitcoin’s price timeline. Following is a detailed explaination and reasons for the recent bitcoin price surge based on some detailed research made by Author at KRYPTOMONEY.COM.
On March 11,2017 Unites States Securities Exchange Commission(SEC) rejected an application for approval of Bitcoin ETF, filed by Winklevoss Twins. Two weeks later, another Bitcoin ETF application was rejected which was filed by SolidX. Two rejections of Bitcoin ETF application dropped the Bitcoin prices seriously. But the Bitcoin community believed that SEC’s decision does not affects their investment interests and will continue to invest in Bitcoin as it is the future of currencies. This supported Bitcoin prices and soon Bitcoin started to rise again.
In a recent news the US SEC announced that it will re-consider the Bitcoin ETF application filed by the Winklevoss Twins. Although it is assumed that it will reject the ETF application again for the same previous reasons, still it created an impact on the Bitcoin prices.
Due to SEC’s initial rejection of Bitcoin ETF application on March 11, Bitcoin prices were falling continuously. But On April 1, 2017 Japan announced to recognize Bitcoin as official legal tender and also introduced tax policies on it. This decision of Japan affected global Bitcoin Market in a positive way and caused Bitcoin prices to surge on most of the Bitcon exchanges all over the world.
Japans official adoption not only just helped Bitcoin prices to surge but also helped to gain mass adoption of Bitcoin as a currency. Two of the major Japanese retailer planned to start accepting Bitcoin as a payment across all of it’s outlet. This will cause people of Japan to start using Bitcoin as a currency.
A recent news came in from Japan that eighteen application have been filed to open Bitcoin exchanges to meet the huge demand. Out of eighteen, ten are debuting the Bitcoin sector.(Read full article)
(Also read: Japan And Russia: The Major key factor for the recent rise in Bitcoin Prices)
Bitcoin was termed as a ponzi scheme by a senior leader of the national ruling party. This caused a widespread fear among India Bitcoin community and people started to back off from Bitcoin as it was being assumed that Indian Government will ban it.
Various social media channels were filled out with messages that Bitcoin in itself is not a ponzi scheme but there may be companies involved in Bitcoin which are operating some ponzi schemes. Also, it is not regularized in India and is being used for Money Laundering purposes. This caused Indian Government to set up a committee to examine virtual currencies like Bitcoin. The committee will give its’s reports to the government by June and it looks like India will regularize Bitcoins by June. (read full article)
This has created hopes in Bitcoin community in India and if India officially legalizes Bitcoin, it will boost confidence among Indian investor which may lead to huge buying and in turn price rising.
India is already being assumed to gain a spot in top five largest economies in the world and if in this time, Bitcoins gets approved in India, it will witness a serious upward swing in it’s prices.
Also, “DIGITAL INDIA” the flagship programmee launched by the Prime Minister of India, Shri Narendra Modi encourages people of India to use and adopt digital payment solutions. So chances are there that the world’s first digital currency, BITCOINS may get legalized in a country which is dreaming of becoming a digital economy.
CNBC Analyst and Capital founder Brian Kelly said that the recent surge of Bitcoin price is due to the rising demand from institution investors.
An increasing number of investors and traders have started to recognize Bitcoin as a long-term investment, store of value and settlement network, rather than as a short-term investment or a short-cut to have huge gains.
As Japan legalized Bitcoin, new companies are entering into the Bitcoin market. The country’s largest financial institutions and corporations have started to launch digital currency exchanges and trading platforms
SBI Group the $3 bln financial conglomerate based in Tokyo, recently established SBI Virtual Currencies, to create a secure and efficient ecosystem for investors looking to trade Bitcoin for the Japanese yen.
Another multi-billion dollar Internet company in GMO Internet has also announced its plans to launch a Bitcoin exchange within this year.
Apart from the above,a major factor that has created some serious interest of institutional investors to invest in Bitcoin is the elimination of consumption tax on Bitcoin. Countries such as Japan and the Philippines have completely legalized Bitcoin as legal tender and are set to drop any special taxes for Bitcoin investors.
The CNBC Analyst, Brian Kelly also confirmed that Bitcoin price are strengthening because of the activation of Segregated Witness (SegWit) on Litecoin. This has created a state of optimisim in the Bitcoin community towards SegWit activation on Bitcoin as well.
Bitfury vice executive chairman George Kikvadze revealed that high-profile investors are not gaining interest in Bitcoin due to the digital currency’s lack of scaling solution.
Upon the activation of a scaling solution, whether that be SegWit, Bitcoin Unlimited or Extension Blocks, investors will be show some interest to invest in Bitcoin full confidence.
Kikvadze also predicted that Bitcoin price would most likely achieve $5,000 with SegWit enabled.
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