Since the beginning of April, Bitcoin price Is continuously rising and is approaching towards its’s all time high of $1263. In just few days, Bitcoin prices recovered from the damage that was caused by Hard Fork fear. Bitcoin enthusiasts may feel joyous after the continuous rising in bitcoin pricing, but one needs to know the reasons in order to make wise decision for future.
The recent rise in bitcoin price is believed to be caused by the acceptance of Bitcoin by Japan and Russia. Japan announced it as a legal tender already where as Russia announced to legalize it soon. This decision affected the Bitcoin market positively which caused it’s prices to rise.
Not only Japan recognized Bitcoin as legal tender on April 1, but also announced the tax policies related to transacting and investing in Bitcoins. Also, it is now being exempted from sales tax.
Kryptomoney.com posted an article about the major acceptance of Bitcoin from Japan and mentioned all the details in brief. Click here to read the article.
After making Bitcoin legal, two major retailers in Japan also announced it’s intention to accept bitcoins as payment in their stores. Bic Camera and Recruit Lifestyle, the retailers will begin it’s trial for accepting bitcoin payments in order to tap the customers who wishes to pay digitally through Bitcoins
These big positive news not only boosted local demand in bitcoin but also pushed global demand for Bitcoins and hence caused Increase in prices.
Also Read: Effects of Japan’s official adoption of Bitcoin
Initially, in Russia, any type of involvement in Bitcoin could land up the concern person to jail. Russia’s central bank had effectively banned the use of the virtual cryptocurrency in 2014 because it thought Bitcoin would hamper the position of it’s local currency Ruble, which was already struggling at that point of time.
The lawmakers and higher authorities personnel suggested that Bitcoin is a source of terrorist funding and a channel for money laundering. Therefore, Bitcoin was banned in Russia.
But increase in global popularity in Bitcoin made Russian government to think again about Bitcoin. The Russian Federal Tax Service issued a letter in October 2016 that stated that under Russian law, digital currencies are not illegal and that there are no prohibitions for citizens or companies when it comes to dealing with them
Not only this, but Russia also announced that it may legalize Bitcoin by 2018.(Click here to read the article in detail:-After Japan, Russia to recognize Bitcoin)
Recently, Russia also organized a Blockchain and Bitcoin summit, where world known Blockchain learders came in to discuss Blockchain and it’s first product i.e, Bitcoin. A huge list of speakers came in and discussed Blockchain and it’s applicability in financial and non-financial sectors as well.
Read full event details.Russia organizes Blockchain & Bitcoin Conference .
The change in Russian attitude towards Bitcoin boosted it’s price and is expected to continue to rise as the demand will be increasing in eleventh largest economy.
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Also Read:
Bitcoin may soon get recognized in India
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