Bitcoin Price Dazzles With Significant Backing From Multiple Avenues
We recently discussed Top 5 Reasons Why Bitcoin Price is Increasing in our previous article. We mentioned that there are some more reasons for the recent surge in Bitcoin price.
The increasing curve of Bitcoin price is making the entire cryptocurrency world get into a frenzy which just got heightened after Friday’s unprecedented record high of $5920 giving a return of around 500% since the start of 2017. By carrying out our regular research, here are some more reasons which can be attributed to the recent rise in Bitcoin price.
Legislative good news from Australia
In line with the country’s FinTech-forward agenda, Australian authorities have ushered in embracive legislation accommodative of Bitcoin activity in a holistic level. Just one month back the Australian government delighted cryptocurrency enthusiasts with the decision of removal of double taxation on cryptocurrency induced activities by introduction of a bill.
Previously, Bitcoin adopters had to bear the brunt of paying the product’s GST before being brought again under the taxation radar due to the GST levied on the digital currency form used in fostering the transaction. The Bitcoin “legitimizing” drive is boosting up the confidence level of investors in a stark contrast to the rigid regulatory moves undertaken by South Korea and China leading to an outright ICO ban.
Independent Reserve, a Sydney based Bitcoin exchange has been adding “between 100 and 200 new users everyday” according to its chief executive, Adrian Przelozny. This has paved the way for a mammoth daily transaction handling of $4 million by the exchange.
The Central Bank has also received a bipartisan rallying call to bring upon Bitcoin legalisation. A bipartisan advocacy group have been formed by two of its pro-bitcoin senators for taking a stand in support of Blockchain technology and Digital currencies in the Australian Parliament.
The Australian Bitcoin Market went hot when the government announced Bitcoin can be used “Just Like Money” in the month of may.
Bitcoin Market Value larger than Goldman Sachs, Morgan Stanley and few others
Bitcoin’s market capitalization almost touched $97 Billion due to the recent price hike. This brought about a 96% hike in Bitcoin price since its mid-September low following the Chinese ban on ICO. The concept of Bitcoin was released by its pseudonymous founder Satoshi Nakamoto who wanted to bring about a decentralized currency system devoid of any central authority in the aftermath of 2008’s financial crisis. This anti-establishment sentiment set the perfect mood for coming up with an “electronic cash” which would “allow online payments to be sent directly from one party to another without going through a financial institution.”
Had Bitcoin been a stock, its market cap would have easily toppled over Wall-street big-shots like:
-Goldman Sachs ($92.9 billion market cap),
-BHP Billiton ($96.9 billion market cap),
-Netflix ($84.5 billion market cap),
-and Morgan Stanley ($89.1 billion market cap).
This would have imparted Bitcoin a rank of 58 in NYSE according to market cap and 15 in Nasdaq. Goldman Sachs may also start Bitcoin trading desk pretty soon.
Bitcoin is perceived by a large number of investors as a lucrative currency or commodity option. It also comes with an upper ceiling on supply which has been fixed at 21 million. Reaching the same will surely take considerable amount of time. Christine Lagarde, the Managing Director of International Monetary Fund holds the view that Bitcoin houses the potential to become the global future in days to come. Thus the investors who decided to stick to the Bitcoin bandwagon in spite of Jamie Dimon, the CEO of JPMorgan Chase terming Bitcoin as “fraud” and Warren Buffett drawing comparisons to Bitcoin being a “mirage” did manage to cash in windfall gains.
The Japanese Saga
The Japanese authorities recently imparted a legal tag to this dynamic cryptocurrency form which was a considerable achievement coming from world’s third largest economy. For adding greater inertia to the pro-bitcoin movement, Japan recently issued licenses to eleven bitcoin exchanges around its geography for eased out operation.
With increasing interest in Bitcoin in Japan, the Japanese Market is now considered to be the biggest Bitcoin market in terms of volume and trade.
Japan legalized Bitcoin recognized it as an official mode of payment on April 1, 2017.
Also Read: Following Japan, Taiwan Supports Development Of Blockchain Technology And Cryptocurrency
October’s 20% jump in Bitcoin price has made speculators go haywire with their own opinions. One of the most deep rooted one was a rumour which indicated at China’s reversal of Bitcoin ban on its trading platform as the biggest cause behind Bitcoin price boost. If the ban gets uplifted in reality, then Chinese Bitcoin exchanges shall soon resume Bitcoin trading under a stringent regulatory environment. New anti-money laundering and licensing regulations might also become a part of the trading rulebook to curb illegal activities associated with the same.
Russian President Vladmir Putin Supporting Cryptocurrencies
Russia is still confused when it comes to regulations of crytpocurrences. While Russia’s Central Bank calls for nation wide ban on cryptocurrency exchanges, Russia President Vladmir Putin is supporting cryptocurrencies.
President Putin recently had chaired a high-level meeting with all top executives from different financial institutions of the country. In the meeting, Putin said:
“We need – based on international experience – to build a regulatory environment that will make it possible to codify relations in this sphere, reliably protect the interests of citizens, businesses, and the state and provide legal guarantees for using innovative financial instruments. It is important not to create unnecessary barriers, of course, but rather to provide essential conditions for advancing and upgrading the national financial system.”
Also, Russian Ministry of Finance proposes registration of Miners and issuing licensing to cryptocurrency exchanges.
DJ Khaled, boxer Floyd Mayweather and Paris Hilton have made the use of their starlet power to promote the sale of these digital tokens. The latest to join the party is football manager Harry Redknapp who recently tweeted, “Proper excited about Mobile Cryptocurrency! I’m in, get involved!” He is known to have invested a portion of his corpus in Electroneum, a brand new form of cryptocurrency based out of Maidstone.
Electroneum will devise an application for mining new coins and digital currency storage. Users can also engage in currency trading by using the application. £12m have already been raised by the company through its token sale according to data published on its website.
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