Bitcoin passed $US 4,000 for the first time, few hours ago.
In my previous post I had talked about how Bitcoin was worth more than Oracle’s Founder Larry Ellison. Despite the hardfork that split Bitcoin into two it’s rising ridiculously(in a good way). This year so far has been really good for Bitcoin and other crypto currencies. The entire market has risen by 600+%.
So what is driving the price up?
Here are the few reasons:
- Pre August rally was most probably due to the idea of free money created by Bitcoin Cash as the foreseeable chain split post hard fork.
- The code change which includes the addition of SegWit (potential solution to bitcoin’s scalability issue) was also the reason of creation of the new crypto currency called “Bitcoin Cash” by those who didn’t like the idea of SegWit, hence the hard fork. Few days ago the SegWit protocol locked in on reaching its minimum requirements, solving the scalability issue (apparently) and boosting user/investor confidence.
- Japan’s rising use of Bitcoin and other crypto currency. India’s rising demand. Just look at the price difference between international exchange Vs Indian exchanges. It’s huge $US ~200-300
- Increasing number of ICOs and startup focused on the blockchain technology including Filecoin which recently made to the news after raising $180 million in a few hours. The investment in these ICOs can only be done after buying Bitcoin or other crypto currency and bitcoin being the most widely used crypto saw a boost.
- People fearing “missing out the boat”. I have a friend who sold his Bitcoin as soon as it reached $US 3000 thinking it’d fall sharply like last time. Day before he told me that he was regretting his decision and decided to buy again and I can only say that he made the right choice. He bought at ~3500.
- Making to the news. Especially western media and the Wall Street. Those were the one’s who predicted that Bitcoin is gonna be the best performing asset till the end of 2017. Let’s see!
What’s next for Bitcoin
No one knows. I’m not kidding. Even the analysts don’t know with 100% certainty that Bitcoin will rise or fall. The technical analysis (most of the times) covers the resistance at a higher level (predicting sell off point) and reversal at lower level(predicting buy point).
Disclaimer: The article is meant for informative purpose only. Trading Bitcoin with your lifetime savings or loaned money is highly risky unless you know what you’re doing. The author doesn’t bear any responsibility for losses you might incur by following the advice written here.