We discussed Top 5 Reasons why Bitcoin price is increasing in our earlier article. But since the Bitcoin price hike is on a continuous upward trend, we are forced to research more about it. The price hike of Bitcoin has set tongues wagging with investors trying to rope in maximum corpus to gain significantly from this latest craze. At the time of publishing this article, Bitcoin price was $6070 with a market capitalization of $100 Billion.Speculations spread across this price rise is available at plenty however in reality, it boils down to the following points mentioned below:
The Blockchain technology underlying the cryptocurrency operation refers to a decentralized ledger which can automatically record transactions without the aid of a financial intermediary. This open-sourced network makes data alteration impossible and highly trackable. Such functionalities has opened up further avenues for Blockchain to become the future of business-to-business and peer-to-peer payment platform with enhanced zeal. Blockchain Technology has already made it’s place in various sectors such as Banking, Finance, Real-Estate, Land Registration, Stock Markets, Food and Beverage, Entertainment,etc.
Major tech giants like IBM, Microsoft, etc are entering into the blockchain space which is again popularizing Bitcoin. Here is a list of some of the use and applied cases of Blockchain Technology all over the world.
A falling dollar means good news for those in the export paradigm but bad news for investors holding idle cash. Usually investors move over to gold in such times. Off late, Bitcoin is emerging as a finite resource much more appreciated than the yellow metal as a store of value. The upper ceiling on coin mining has been set at 21 million which makes it all the more lucrative. This has increased the demand for Bitcoin with the diminishing dollar.
Also Read: Bitcoin better than Gold
The software upgrade brought about within two months of the hard fork has scraped some data off from Bitcoin’s Blockchain for boosting up capacity along with lowering transaction settlement costs and quickening settlement times. The main reason behind this upgrade are enterprise customers who wish to test Blockchain applications in small-scale and pilot projects.
Increased interest of institutional investment firms such as Goldman Sachs and Fidelity is acting as the latest feather in Bitcoin’s cap. Abigail Johnson, the CEO of Fidelity has recently made the announcement that his company has successfully mined Ethereum and Bitcoin at profit. Fidelity’s website is also providing access of its cryptocurrency holding to the customers. Given the increasing interest in cryptocurrencies and liquidity, Goldman Sachs is also considering for Bitcoin trading.
China has always played a big role in shaping up Bitcoin’s operational success. Last month, the Chinese officials came up with the announcement of imposing a ban on all ICO offerings by imparting to them the tag of being fraudulent. It also issued warnings of cracking down domestic cryptocurrency exchanges. This did manage to send shockwaves across Chinese crypto enthusiasts. However recently rumours indicating at a ban reversal has infused a ray of hope among investors around the world hiking up the price of Bitcoin.
Bitcoin is increasingly being used as a payment platform. Starting from 2014, a number of companies have agreed to the Bitcoin mode to get the revenue figures rolling. Even smaller merchants are pondering over the idea of opening a Bitcoin powered payment gateway in days to come. The recent updates added to Bitcoin’s blockchain technology can help attract new merchants by lessening transaction settlement time.
Investor emotions have a big role to play in hiking up the Bitcoin price. Some people have become a part of this phenomenon in a blindfolded manner without understanding much about the nitty gritties of Blockchain. And taking into consideration the massive gains registered by Bitcoin investors in the past couple of years, only a fool would wish to wait and watch before joining the craze.
Although Bitcoin seems unstoppable, it surely brings along a bevy of associated risks.
->We all know that Blockchain technology houses tremendous potential. However people are clueless about how quickly business houses can integrate Blockchain technology or whether Bitcoin has the desired Blockchain technology. Competition is also cut-throat given the relatively less barriers to entry. This has created space for about 1100 cryptocurrencies to ply the market.
->Regulation holds the position of a double-edged sword in Bitcoin industry. No doubt, some think of the same as an air of positivity which holds the power to impart a legal tender status to Bitcoins. However increased regulation can also make it more difficult for Bitcoin to access certain markets. China and South Korea have already imposed a ban on ICO making it difficult for indigenous investors to engage in crypto dealings.
On the other hand, recently, Ripple CEO Says “Government’s ICO Regulation Is Good“
->Emotions are truly powerful but have a limited scope of action while pushing up assets. The surge in online ads, roadside signs and emails trying to impart knowledge about Bitcoin amongst people serves as clear indication of the fact that Bitcoin can actually be a big fat bubble just waiting for the pin prick to burst off.
Also Read: Some More Reasons Why Bitcoin Price is Increasing
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