There is no stopping bitcoin but the recent high that happened on November 3 (Friday) also prompted experts to issue a red flag on an impending financial crash.
According to CoinDesk, Bitcoin has reached an all-time high with a record of $7,454.04. This is indeed a sign that the financial industry is shifting towards the digital currency. This has indeed disrupted the way business is implemented and done on a day-to-day cycle. Traditional companies that still see bitcoin as an outsider or a nuisance are now challenged further by the disrupters of the economies – the blockchains.
The Uphill Climb of Bitcoin
The price of bitcoin actually went up to a whopping 210% last year which trades from about $450 and then broke records when it reached $1,400 in May 2017. After much skepticism and negative publicity plus rejection from traditional economists, bitcoin and other cryptocurrencies are now slowly recognized by many countries, governments, and even the world’s biggest brands. This is said to be an emerging currency or asset which could potentially replace or enhance the financial sector that people are accustomed to.
Since the creation of bitcoin in 2008, the currency has struggled amidst regulators and detractors who are saying that it is illegal and should be banned. Despite the negative criticism and uncertainty, many investors and consumers saw the potential of bitcoin and supported the crypto industry.
What Causes Bitcoin’s Rise in Value?
Technology drives dynamism to business operations. Opening up to changes in the market to keep up with the needs and demands of your consumers is the predictable way to run a good business. This is precisely one of the reasons for the upward trajectory of bitcoin this year.
The lack of regulation in some countries with regards to bitcoin transactions also added up in increments to its value. More so the lack of control or intervention from middlemen or big banks could also have added up to its intrinsic value.
Its peer-to-peer or decentralized system also influenced its market value as no middlemen like the banks or even the government can take full control of the exchanges or trade happening in the community. This resonates very well especially with the people affected by the credit crisis in 2008.
Another selling point for bitcoin is that transactions are guaranteed to be seamless and secure with dual-sided cryptography in place which makes it very difficult to be deciphered by hackers. It is not a surprise then that bitcoin has emerged to be a tough competitor to fiat money with its rise to as much as 500% this year.
What further bolstered the success of bitcoin is that there are plethora of options that can be explored for speculation and trading online which provides its audience and followers more ways to generate profit and grow their revenue stream.
To people who says there is a market bubble, bitcoin’s consistent and steady rise actually pricked their bubble instead. CME is also going to launch bitcoin futures which is hurling in more investors for November. This is indeed a surefire sign that bitcoin is going mainstream anytime soon.