Bitcoin price increasing daily
Bitcoin valuation in terms of market capitalization is increasing day by day and has crossed the awaited figure of $30 Billion.
Bitcoin’s market capitalization at the time of publishing this article was $30,365,949,901 and the market prices was $1860.19. In Indian markets, Bitcoin was priced around INR 1,23,128.
Various market experts predicted that Bitcoin will reach $2000. It’s just $140 short. Bitcoin prices are continuously rising. It has gained almost $800 from March when it was priced around $1050. Such a huge growth in short span of time.
Considering this rapid surge in price levels, a correction in prices is possible. It will be difficult for Bitcoin to reach $2000 from here as it is too over-priced and a fall in prices is expected, as traders and investors would like to book profits.
Also, Bitcoin market capitalization may be increasing, but it’s share in total crypto currency market is decreasing. Bitcoin was dominant in crypto currencies with more than 85% of total cryptocurrency market share. It is gradually falling and is now around 55% . Reason being the recent rise in prices of Altcoins like Ethereum, Dash, Litecoin,etc has made investors and traders shift their interest from Bitcoin to Altcoins.
Also, Bitcoin being too over-priced, Altcoins are giving better Return on Investmen (ROI) and thus demand for cryptocurrencies other than Bitcoin is increasing.
For example, KryptoMoney.com posted an article about Top 10 cryptocurrencies as on 30 April 2017.
Exactly after a week, another article was published about Top 10 Cryptocurrencies as on 7 May 2017.
If we study both t he postsin detail, we can see that prices of Litecoin was $15 on 30 April.It doubled and was $30 on 7 May. When compared with Bitcoin, it was priced at $1391.08 on 30 April and$1575.71 on 7 May.
Though Bitcoin prices also increased, but Litecoin prices doubled and hence gave 100% return on investment. Similar case was for Ripple where it’s prices also doubled.
New investors and traders who think Bitcoin is too over-priced for them obviously looks for Altcoins, and when these Altcoins are giving better returns on investment, no need to look for Bitcoin. As a result, Bitcoin’s demand from short-term trading point of view is decreasing which is also causing it’s market share to decrease, thus prices will also decrease.So it may be difficult for Bitcoin to reach the crucial level of $2000
Considering for a short-term horizon, Bitcoin prices may fall. But if considered from a long-term prospective, Bitcoin prices will surely rise.
Rising popularity and mass adoption from people all over the world is creating increasing it’s demand and thus prices may rise in future.
Since Japan legalized Bitcoins on April1, prices are continuously rising . People in Japan are starting to use it as a currency and thus, transactions in Bitcoins are increasing. Looking at Japan other countries are also starting to recognize Bitcoin as a legal tender of money.
Recently, Australia declared usage of Bitcoins as “Just Like Money” and legalized it. Also removed Double-Taxation policy on it. (Read full Article)
India has still yet to give it’s decision regarding regulation of Bitcoin and it’s acceptance as legal tender of money. The Indian government has already established a committee which will examine virtual currencies such as Bitcoin and will give it’s report to the government by June. Based on the report, the government may give it’s decision about legality of Bitcoins.
Overall Indian Bitcoin market is positive and Indian Government may recognize Bitcoin as legal tender.
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