Bitcoin Enters The $10000 Category
Amidst much speculation, Bitcoin has finally done it, it has surmounted the biggest psychological barrier and entered into the $10,000 price radar. And in case if you thought that this is the last chapter of the Bitcoin saga, then hold on to your seatbelts as the game has just begun. Bitcoin seems to show no signs of slowing down anytime soon and have been skyrocketing since Thanksgiving week after consolidating for some time at $8000 mark. Black Friday which is often considered to be the D-day for technology freaks worldwide with slashed down prices of gadgets did even benefit the crypto market by adding a positive inertia to its price rise.
Black Friday marked an upper $8000 figure for Bitcoins which entered into the $9000 threshold on Saturday ultimately crossing the $10,000 mark thereafter. There have been various background causes propelling this price hike but fear of missing out (FOMO) is considered to be the greatest fuelling factor.
2017 surely has been a stunning year for Bitcoins bringing about 10 times hike in its price. This magnanimous growth did not happen in just one day but was the combined effort powered by massive trading volume and mainstream adoption. The trading volume of Bitcoin thus exceeded $5 billion within the past 24 hours.
Major announcements pertaining to crypto world has been made in the current fiscal signifying the growing acceptance of these digital tokens across the globe. Extensive coverage of this growing phenomenon by mainstream analysts added fuel to the fire causing huge surge in Bitcoin’s institutional investors and hedge funds.
With the upcoming launch of Bitcoin futures market by CME within second week of December, Bitcoin may very well get a legal identification tag. Once this becomes a reality, no one can stop Bitcoin from becoming the investment du jour of the global financial community.
Following the announcement made by Chicago Mercantile Exchange (CME), another bigshot futures market Chicago Board of Options Exchange (CBOE) has also announced its plans of launching Bitcoin derivate trading very soon. Big bankers have are also taking note of Bitcoin and irrespective of their love-hate relationship just cant ignore it all together.
Mainstream media has also been focussing a lot on Bitcoin lately. Just an year ago you would rarely stumble across Bitcoin news but coming back to present day you will hardly come across any journal devoid of crypto news. The rapid price hike of Bitcoin has made it subject to much adulteration helping it to go viral. The growth in hedge funds which invest in these cryptocurrencies have also grown exponentially with news agencies reporting the initiation of 70 new funds back in August. At present about 120 modified or new crypto related funds are available for funding the digital flow.
Growth of Bitcoin Network
The network is bound to keep pace with the growing adoption if its wants to reap good returns. Following its ever-increasing price, Bitcoin has kept up with a huge transaction volume. With daily transaction of Bitcoin exceeding $2 billion, the mining of Bitcoins has ushered in heavy profit for its users. Excluding the block rewards, Bitcoin miners have been earning fees worth $1.5 million. This has provided positive stimulus to the miners to concentrate more on mining possibilities as they are sure to benefit from the same.
Adoption In A Global Scale
The adoption of Bitcoin has been experienced at a rapid scale across the globe rather than localised clusters. Starting from South Korea to Switzerland and Venezuela to Zimbabwe the rate of Bitcoin adoption has been equally good in all these places. Since the day when Bitcoin was first used in fostering international remittances, the rate of such transactions have increased by leaps and bounds. This adoption has been found to follow a uniform pattern however regions having greater technological access have been the flagbearers of this consistent adoption curve.
Nations such as Venezuela having substantially less democratized technology are also slowly catching up. With the devaluation of Bolivar, Venezuela is experiencing a steep rise in demand for Bitcoins. Setting up of Bitcoin ATM’s have also added to this growth figure. Presently about 4.8 Bitcoin ATM’s are being installed on a daily basis and this number is expected to grow with more and more ATM companies coming online.
Considering all such factors it is very natural for Bitcoin to reach such record heights. If the adoption keeps on with its present trajectory then we can surely expect great things from Bitcoins in days to come. New users who have already been late to the party are buying Bitcoins at premium prices thus keeping its demand alive. Whether Bitcoins gets concurred by the bull or the bear in future can only be revealed with time. But one thing is for certain and that’s is Bitcoin surely is not a bubble. It is just the combined force of people gaining awareness about it and coming together to make use of the same in fuelling their growth drive.
Major exchanges around the world such as Coinbase have reported record surge in user registrations. If things continue this way then Bitcoin can turn out millionaires out of laymen every second.
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Tarunima Ghosh Laha is a Finance Post Grad from St. Xaviers who believes Finance is more than just Balance Sheets and Ledger creation. This filmy bookworm who believes she was a sloth in past life also nourishes a penchant of owning a private zoo someday. Equipped with a laptop and online Lexicon she is all set to give finance a glamorous makeover in the form of exciting writeups with bang on info and flashy new words.