Emerging into a fresh new year, Bitcoin has kicked off the financial period with a soaring rise above $1,000 for the first time since 2013. The cryptocurrency previously achieved its pinnacle value of $1,163 during that year. Reverberating across the financial markets, this swift uptick marks a remarkable transformation. Bitcoin, an internet-based currency noted for its volatility, has now outperformed all central bank-issued currencies after boasting a stellar 126 percent increase in its worth during 2016, contends Reuters.
Bitcoin’s journey onto the international stage has been tinged with ups and downs. Following a disastrous attack on the Tokyo-based Mt. Gox Exchange, shortly after its zenith peak of $1,100, Bitcoin’s value plummeted to below $400. Undeterred, the cryptocurrency regained its ground, increasing in popularity particularly in certain parts of the world. Currently sought-after in China and several African countries, Bitcoin felt the vigor of growth throughout 2016, boasting an impressive 10% average growth. Key events like the economic recession in Nigeria and the consequential election of Donald Trump in the United States have been identified as contributory factors to Bitcoin’s climb in the last quarter of 2016. Of greater impact, the wobbly state of central bank-issued currencies, notably the Chinese Yuan which is currently at its weakest point in two decades, has predominantly elevated the demand for Bitcoin.
On the other side of the globe, the Indian government’s decision to pull high denomination notes from circulation, prompted an unexpected turn of events for Bitcoin. Paul Gordon, a board member of the UK Digital Currency Association and co-founder of Quantave, told Reuters, “The growing war on cash, and capital controls, is making Bitcoin look like a viable, if high risk, alternative.” Gordon’s firm is among businesses aiming to streamline digital currency trading for individuals and corporations.
As demand skyrockets, additional bitcoins are steadily introduced into the system — approximately 12.5 bitcoins every 10 minutes — to manage the growing demand. Bitcoin, currently valued at an impressive $16b, parallels the worth of an average FTSE 100 company, states Reuters.
Paul Balo is the founder of TechBooky and a highly skilled wireless communications professional with a strong background in cloud computing, offering extensive experience in designing, implementing, and managing wireless communication systems.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.
