Bitcoin is a web-based “Cryptocurrency” (Digital Currency) that has no central authority but relies on thousands of Computers to validate transactions and add new Bitcoins to the system. Falling far from purview of any authority, its role is to move money across the globe speedily and anonymously.
It seems attractive to those wanting to get around capital controls, such as China’s. It is also quite appealing to those worried about a lack of supply of cash, such as in India, where Prime Minister Narendra Modi removed high-denomination bank notes from circulation in November to ridden his country of Black Money
The year kicked of quite spectacularly for Bitcoin for it took a 125 percent heave to boast off to over $1000 for the first time in 3 years! Volatility has been the prime feature of “Cryptocurrency” over the Years. It actually had a tenfold increase over a period of 2 months in the backend of 2013, reaching value of $1100 before plunging to $400 in an even shorter period thanks to Mt. Gox exchange being hacked!
Over the 2 previous years it however showed much more stability before being boasted by 2.5 percent to $1022 on Bitsmap in the first week of January. Its biggest daily moves in 2016 were around 10 percent, very volatile indeed but still nowhere close to the 40 percent boast it saw in 2013
Although Bitcoin is still far away from the $1163 stunt it performed in late 2016, the chances that it may reach it soon are no less. About 12.5 Bitcoins are added each moment moving it closer and closer! No doubt A Board member of UK Digital Currency was quoted saying “The growing war on cash, and capital controls, is making Bitcoin look like a viable, if high risk, alternative”
Will bitcoin’s price keep rising? Or will they be cut short? Lets see in upcoming days.