Despite previous fears of international regulation, Bitcoin has again surged. The cryptocurrency which was an object of derision at its release has now far surpassed anyone’s expectations.
The block-chain based digital currency is currently valued at $6000 USD per bitcoin a 500% increase in value from the beginning of the year. Its market capitalization is currently valued at around 100 billion USD. As the original cryptocurrency, it has helped spawn several others with varying degrees of viability.
Some like Ethereum seem poised to rise to viability others like dogecoin have more trouble being taken seriously. Blockchain technology is currently a leader in financial transaction cyber security.In an interview with Reuters Charles Hayter of Cryptocompare based out of London said that he believes that it is China’s decision to loosen regulation as opposed to strengthen in that it has given Bitcoin its most recent boost.
“The price is unlocked and driven by demand and buyers entering the markets," Hayter said in a recent interview. China had previously taken steps over the summer to greatly resist the trend in digital currencies, but that seems likely to change.
Jason English the Vice President of Protocol Marketing for Sweetbridge, a Swiss blockchain company, that focuses on supply chain issues agrees, “As much as 60 percent of the world’s bitcoin mining is happening in China, and therefore, many of the large ... investments in ICO projects have also been coming from crypto-currency holders in China, whether directly or indirectly.” Other speculators seem to agree as the price of blockchain currency and especially bitcoin continues to rise.
The ramifications of the rise of Bitcoin are still hotly debated. The interaction between governments and markets will ultimately determine, the future viability of Bitcoin. Many people wonder what the value will be once the last Bitcoin is released.
For China the decision to lower regulations on Bitcoin makes a great deal of sense as more than half of Bitcoin “mining” occurs in China. Bitcoin could in this sense, represent an interesting and powerful tool for the Chinese in the evolving financial market of Cryptocurrency.
As long as regulations remain an uncertain factor, Bitcoin will be a risky bet. It is a bet however that many people seem still willing to make, and to hold onto as it continues to climb in value. Investors must balance the very apparent risk that is inherent in such a fragile market, with the rapidly increasing value of cryptocurrencies.
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