Čvn 23

Highschool Dropout and Bitcoin Millionaire Hosts Reddit AMA

· June 23, 2017 · 2:00 pm

High school dropout and Bitcoin millionaire, Erik Finman, has hosted a Reddit AMA to shed some light on himself and his journey in the cryptosphere.


Too Cool for School

Erik Finman was recently featured in a CNBC story in which he described the journey through the Bitcoin and cryptocurrency world which lead him to acquire over $1.09 million in Bitcoin and other smaller holdings in altcoins like Litecoin and Ethereum. Finman took the opportunity to conduct a Reddit AMA, where users were allowed to ask questions about Eric’s story.

Dropping out of high school at the age of 15 to focus on his educational website, Erik Finman made a bet with his parents in which he agreed to go to college if he wasn’t a millionaire by the age of 18. Thanks to the continuous Bitcoin rally, Finman was able to hire professional programmers to work on his website, later selling it for Bitcoin again, starting his own VR company, all while trading Bitcoin and increasing his holdings.

lots of bitcoins

Now, Erik Finman holds 403 bitcoins which are currently valued at $1,092,678.08, among other holdings, which means that he doesn’t have to go to college, according to the bet. However, it’s also worth noting that Finman is not yet a millionaire, as his profits in Bitcoin have not yet been realized. However, Erik believes in the potential of Bitcoin and blockchain technology.

During the Reddit A.M.A, he stated:

I see bitcoin going up way more than just the 2000s/3000s where it’s been. Bitcoin and blockchain technology is where the internet was in the 80s, not the 90s, but the 80s. And if you just get a fraction of the world on it. And I know all these entrepreneurs inventing world changing technologies that one of them will do a lot to get new people onto Bitcoin thus raising the price. Bitcoin will be worth tens of thousands of dollars to hundreds of thousands of dollars to even millions of dollars a coin

Reddit AMA

Riding the spotlight created by CNBC’s story, Erik Finman decided to host a Reddit AMA (Ask Me Anything) in which he planned to answer user questions, most likely on his journey towards becoming a millionaire and his dealing with Bitcoin and other cryptocurrencies. However, the focus was not on Bitcoin

Reddit AMA

Mainly curious about Erik’s taxes and education, many users wondered if Erik Finman paid his taxes accordingly, with some users suggesting the contrary. Many also asked if Finman has plans to return to formal education, although he didn’t show much interest in doing so.

The thread was also flooded with negative comments attempting to discredit Erik Finman as a kid who made a “lucky bet” when purchasing Bitcoin. Finman addressed one of these comments: 

I spent every day working to build up the number of Bitcoins I had. Turning 80-100 Bitcoins to 403 + other money in cryptocurrencies. Feel free to take what I say with a grain of salt but it was not one purchase, it was years of trading in addition to building out my projects. I wanted to clear that up. I’m not perfect, so you are right there might be imperfections in my advice.

Erik Finman

Erik Finman – Lucky or Shrewd?

While it may be simple to dismiss Erik Finman as “simply lucky”, it would be unfair to do so. When considering that Bitcoin is still so far from mainstream adoption, having the foresight to research and invest in Bitcoin is far from lucky, unless you’re buying Bitcoin blindly because someone told you too.

Although it is true that Bitcoin’s volatility may be near impossible to predict, Finman’s understanding of the underlying technology allowed him to make an investment, not based specifically on the market (or hype) but based on the potential of Bitcoin. Not only that, but his understanding of the markets themselves allowed him to grow his Bitcoin holdings with trades.

However, Finman has also proved that there is more than just luck to him through various projects he has previously worked on, which have also granted him high yields. These projects include his educational websiteabd his own VR company.

What’s your take on the story of Erik Finman? Will Bitcoin continue to make young millionaires? If so, can this change in wealth distribution change the world for the better? Let us know your views on the comments below?


Images courtesy of Twitter, Shutterstock

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Čvn 22

Bitcoin Potentially the Most Lucrative Trading Investment Since Amazon

· June 22, 2017 · 1:00 pm

Comparing the dotcom booms, Amazon share price and performance to Bitcoin draws some very interesting parallels, setting Bitcoin as potentially the world’s most lucrative trading investment.


Emerging Tech market Capitalisation Then and Now

Gordon Scott at Investopedia writes that Bitcoin is comparable to how Amazon was treated during the Dotcom boom.

Even by the start of 1997, everyone knew Amazon had a great idea, but no one could fully explain how much its shares should be worth.

It is that very problem that Bitcoin now faces. Everyone realizes that it is a great idea, yet it is hard to fully grasp exactly how much it should be worth. Bitcoin’s primary use as a monetary is well known, but the actual technology and its potential applications are still a great mystery to many.

Amazon faced the same problem as it took new approaches to distribution and supply chain management. Interestingly, Amazon initially started in the book sector and, while it dominates that market to this day, it has since evolved by several orders of magnitude to be the giant that it is today. Gordon further explains:

Investors were not able to fully and accurately quantify Amazon share value at first. Can you blame them if it was hard to analyze the idea of using supply-chain management software to create a virtual book warehouse and factory outlet mall synthesized into a single website?

If we take a look at Amazon’s market valuation back in its 1997-99 cycle there existed the same degree of price volatility that Bitcoin has experienced, at least in it’s 2016-17 period which has seen a much steadier rise as a result of actual widespread investor speculation.

It is the cryptocurrency’s volatility that makes it such a potentially highly rewarding trading investment. The price swings, while hopefully not terminal (as they became after 2010), offer the trader many opportunities to take profit and reinvest. As long as Bitcoin continues to follow the price trends set by Amazon, its traders can potentially continue to make a very lucrative trading investment with the coin.

As can be seen in the charts above, the dotcom boom parallels the current state of cryptocurrency. Furthermore, as other altcoins emerge to stand up to rival and compete with Bitcoin, there exist the same issues of fluctuations in price.

These same issues were present in 1997, except that some companies went on to continue rising as others crashed with the bursting of the dotcom bubble.

Bitcoin In Perspective

Sue Chang at Marketwatch posted this chart (below) which puts the current size and value of Bitcoin into perspective:

Bitcoin - Putting the World's Money into Perspective

As illustrated above, Amazon currently stands at a value of $402 billion, with Bitcoin already sitting at a $41 billion market capitalization. Given this, it’s not hard to get a sense of the size of the cryptocurrency’s current projected value and there is a great deal of market confidence in the coin to have reached this stage.

While many see Bitcoin as being in a bubble, and there may yet be many more volatile dips to come, it is worth remembering that companies such as Amazon suffered also from this market volatility. Volatility, while not desirable in a currency, could just be a sign of Bitcoin and its technology truly finding its feet among its fellow market giants.

Will Bitcoin fulfill its promise as the most lucrative trading investment? Let us know in the comments.


Images courtesy of Investopedia, MarketWatch

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Kvě 27

Bitcoin Plummets $600 Following Volatile Thursday Trading

· May 27, 2017 · 5:51 pm

Bitcoin’s price suffered more losses on Friday following Thursday’s drop and subsequent rebound, plummeting 25% in a single day.


While it appeared that Bitcoin had regained its historic upward momentum following Thursday’s $500 drop, Friday proved even more turbulent as prices dived $600 from $2.5k towards $1.9k. As of Saturday afternoon, Bitcoin’s price appears to have stabilized around $2.1k.

Bitcoin price chart

What Goes Up, Must Come Down

Bitcoin’s price drop follows a week of unprecedented growth, in which it climbed from $2000 to an all-time high of $2800. Many claimed that a correction was overdue and that Bitcoin is back on its way towards $3,000.

Others have issued dire warnings of a Bitcoin bubble that may just now be popping. Older investors can still recall the sting of Bitcoin’s infamous 2013 crash (and subsequent destruction of the Mt. Gox exchange), and are wary of repeating the same mistakes. Bitcoin’s price also has a repeatable history of spiking suddenly before crashing to a higher, more stable level.

Friday, Bloody Friday

Traders have historically used Fridays to sell off securities or place shorts, anticipating a price drop come Monday morning due to what has been called the “weekend effect“. The upcoming long weekend combined with Thursday’s high volatility likely fueled a large sell-off in the cryptocurrency market. Bitcoin’s influx of new investors following its price increases may have also spurred a panic sell.

You Bought the Ticket, Now Ride the Coaster

Experienced traders have continuously warned new investors about Bitcoin’s notorious volatility. In a Reddit thread chastising those who bought at the top on FOMO (“fear of missing out”), one Reddit user had some choice words to share:

Now here’s the question: did you buy Bitcoin just because it was worth a certain amount of dollars, or did you buy it to hold a piece of the action? This is a piece of the action. Roller coaster to the moon has its ups and downs.” – zomgitsduke

Another thread was created by a user claiming to have dumped $45k into BTC at its top. He intends to exercise discipline and hold:

“Genuinely don’t give a s— that the price has corrected/crashed/whatever you want to call it. It’ll be back sooner or later. Bitcoin is long term. Don’t weep.” – thesilentwitness

Bitcoin To The Moon

Despite these recent setbacks, many are still confident that Bitcoin’s run isn’t over yet. The market appears to remain Bullish as traders look to buy in on the massive price dip.

Do you think Bitcoin is headed back up? Or do you think that the Bitcoin bubble has finally burst? Tell us in the comments below!


Images courtesy of WorldCoinIndex, Shutterstock

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Kvě 26

Bitcoin’s $500 Price Drop Sets Community Abuzz

· May 26, 2017 · 12:00 pm

Bitcoin prices dropped yesterday from $2800 down to $2460, sparking concern and speculation across the cryptocurrency community.


The large drop in value has come alongside the largest Bitcoin Bull run in the currencies history, it caused panicked posts on social media with one Reddit user posting;

“What the hell happened with the drop from 2800 to 2460?!!!!!” – TakinBackMyLove, a distressed Reddit user.

Many other new Bitcoin users, drawn to cryptocurrency investment by the current upward cycle of the market, also voiced their concerns while Bitcoin veterans remained calm, having seen this all before, and much worse.

Welcome to Bitcoin

The drop follows three straight days of price increases for Bitcoin as the price climbed from $2000 to $2800, which is was an all-time high for coin. In financial markets, it is not uncommon to see corrections like this after relatively large gains over a short period of time, which really does bring a touch of sanity to a frenzied market. That the decrease was not more substantial, given what has overall been a very large rise, should give investors comfort.

Bitcoin Historical Prices

Past Volatility

Bitcoin has been historically famous for its massive volatility, with its price declining by several orders of magnitude in just the space of minutes. In August 2011 the price dropped by almost 50% from $13.50 down to just $7 in the period of 7 hours. However, the coin is also famous for its sudden gains too, as Bitcoin prices began hitting $80 dollars in the same year.

Bitcoin price drop August 2013

Another example is the 2013 crash, often attributed to the downfall of the infamous Japanese based exchange, Mt. Gox, when the site went down it took many Investors coins with it. Bitcoin took its time recovering, and cryptocurrency as a whole entered a bear market. Bitcoin has made slow and steady gains since then, however, it is only since March that the gains have started to rise at a disproportionately increased rate.

It comes as no surprise that in the wake of such massive gains that Bitcoin fever seems to have struck again.

Still Bullish

With daily candles ultimately still in the Green, all signs still point to the coin remaining Bullish and, at the current time of this writing, it has since started climbing back towards $2,550.

Bitcoin Still Bullish

What do you think of Bitcoin’s volatile history? Do you think prices will continue to climb or is it a bubble that is about to pop? Let us know in the comments below!


Images courtesy of BitcoinCharts, AdobeStock

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Kvě 24

Jeff Gundlach: Bitcoin is Soaring Because of China

· May 24, 2017 · 9:30 am

It’s no coincidence that Bitcoin is surging as the Shanghai composite falls, DoubleLine Capital CEO, Jeffrey Gundlach, claims.


Gundlach: Bitcoin Surge Linked to Shanghai Composite Fall

Jeffrey Gundlach, CEO of DoubleLine Capital, tweeted the above, making the assertion that the surge in Bitcoin price has coincided with a drop in the Shanghai composite, saying:

Bitcoin up 100% in under 2 months. Shanghai down almost 10% same timeframe, compared to most global stocks up. Probably not a coincidence!

This drop in the Shanghai composite has not followed the trend of most major indexes which have so far climbed this year.

That the Shanghai composite fell this year was seen to be a sign of it being under pressure from increasing Chinese regulation, with the index being down almost 10 percent over the last two months.

In local currency terms, the composite has fallen 5.65% from the 22nd of March with Bitcoin itself having risen 120% during this period.

Bitcoin in China

The rise of Bitcoin’s price has obviously been longer in gestation than this quick comparison, but with those eager to get out of fiat, it’s not hard to see why that might be, and why it has so far proved to have been the better choice.

Signs have been positive in China for Bitcoin, it’s a technological field the country is seemingly eager to keep up with, whilst currency pairing has been limited, trading between Fiat and Bitcoin is booming.

Capital Flight

China has a large expatriate market, with foreign talent being brought in due to the country lacking senior managers, many of these look to repatriate their money in a cost efficient way. With Bitcoin heralded for its micro transactional benefits for economic migrants sending money back home to their families, this also benefits those with larger incomes too, be it corporate or personal.

Bitcoin China Money

That China has frozen Bitcoin withdrawals from China based exchanges as part of their latest rounds of regulation demonstrates they are aware of this issue of capital flight (or money laundering) and are taking the necessary steps to counter it.

Something which in my opinion can only bring further stability to the digital currency and ultimately help protect not only Chinese citizens investment, but the market as a whole.

Is Mr.Gundlund correct in his comparison? Does China have a more progressive attitude to Cryptocurrency, and has the governments actions actually made the Chinese more confident in their investments? Does this mean that China is right to regulate? Let us know your opinions in the comments!


Images courtesy of pionline.com, Shuttesrtock

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Kvě 22

Global Cryptocurrency Market is Now Bigger Than Uber, Airbnb, Xiaomi

· May 22, 2017 · 10:30 am

The global cryptocurrency market cap has now blown through that of famous startups like Uber , Didi Chuxing, Airbnb, Xiaomi, and many others.


Global Cryptocurrency Market cap

As Bitcoin and other cryptocurrencies gain traction throughout the world, more money keeps pouring from traditional markets into the cryptosphere. Breaking record highs during the weekend, Bitcoin, Ethereum and others have grown to unprecedented values, adding roughly $25 billions to the global crypto market cap in the last two days.

Currently sitting just under $80 billion, the global cryptocurrency market cap has now blown through that of famous startups like Uber ($68B), Didi Chuxing ($50b), Airbnb ($31B), Xiaomi ($46B), and many others.

Although there is still a long way to go to reach the value of giants like Apple, Microsoft and Amazon, this marks a significant milestone in the cryptocurrency progress.

The continuous rally in the crypto markets is believed to be mostly connected to the recent Japanese law, in which cryptocurrencies are considered as legal payment methods exempt of consumer tax. Not only that but in the midst of political uncertainty and as the traditional market continues to plummet, investors are looking for safe-haven properties that are often provided by gold and now by cryptos like Bitcoin and Ethereum.

Moreover, Bitcoin and altcoins are completely new to most average investors and represent a certain level of technical challenge. However, cryptocurrencies are actually much easier and cheaper to access than the traditional market. Buying stock in these startups is no easy task, as opposed to buying Bitcoin or altcoins, which is also a driving factor in the cryptocurrency rally.

As one Reddit user noted:

People are constantly whining about how hard it is to buy Bitcoin, but try buying into an IPO for one of those startups or just shares off the market. It’s not impossible, but it’s not cheap and it’s not easy. Relatively, crypto has a very low barrier of entry and you can trade as little or as much as you want. There’s no substantial minimum trade cost and fees are near enough to zero to have no impact.

Bitcoin Dominance

In the last month, the cryptocurrency landscape has changed drastically, gathering over $40 billion in market cap and doubling in size In time, Bitcoin has been losing its share of the crypto market at an accelerating rate.

Even though Bitcoin is still the “top dog” with a market dominance of roughly 46%, the change in market cap distribution represents an important shift in the cryptocurrency scene, one that may not be great for Bitcoin itself, but that is certainly great for the cryptocurrency market as a whole.

Bitcoin is likely to remain the leader in terms of coin market cap, given its broader application as a currency (and not as an appcoin or asset) and the relative advantages it has over other currencies such as security, immutability, and decentralization.

However, this change demonstrates that investors are becoming more knowledgeable about blockchain technology in general. Additionally, many newcomers are probably also investing in alternative cryptocurrencies with the hopes of catching the next wave after failing to buy bitcoin for double and even triple digit prices. 

Lastly, this shift in dominance may also be connected to the pressing capacity issues that Bitcoin is facing, preventing it from keeping up the growth of other coins that have yet to face their own scaling challenges down the road.

Paradigm Shift or Bubble?

Although this unprecedented rally is certainly a reason for excitement, many members of the community have voiced their concerns regarding the possibility that we are currently experiencing a bubble similar to the one experienced in 2013, which as we all know, had disastrous results.

Some are even comparing the current Poloniex situation with Mt.Gox back then, given the recent suspicion that Poloniex is manipulating the markets, an idea that isn’t so far-fetched since Poloniex comprises the majority volume on the most valuable altcoins.

The cryptocurrency surge presents signs that can be interpreted from multiple sides. While it is possible to present logical and compelling arguments for many theories, the truth is that cryptocurrencies are a completely new asset class. In other words, no one can predict how this nascent market will behave, especially in the information and internet age. 

One thing is certain, however, there is still a long way to go to reach mainstream adoption. Therefore, we could just be getting starting.

To give you an idea, the current global cryptocurrency market cap would have to grow tenfold to reach that of Apple. While Bitcoin itself would have to be worth roughly $46,000 USD to have the same marketcap as Apple or roughly $700 billion.

What do you think? Are we in a bubble? Will Bitcoin lose its position as the top cryptocurrency? Share your views on the comment section!


Images courtesy of coinmarketcap, Shutterstock

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Dub 28

EToro Sees Bitcoin & Ethereum Trading Volume ‘Explode’ by 4,500%

· April 28, 2017 · 5:30 am

eToro has revealed that the number of users its Bitcoin and Ethereum has soared while trading volumes have “exploded” on its platform since the beginning of the year. 


eToro Runs Up Trading Volume 4,500%

EToro, a leading online trading and investment platform, has experienced a huge increase in both cryptocurrency users and trading volume of Bitcoin and Ethereum, according to Marketwatch. 

So far this year, eToro users trading CFDs (contracts for difference) in cryptocurrencies his risen by four times compared to the same period in 2016. Since the beginning of the year, cryptocurrency trading volume on eToro has soared by a whopping 4,500%.

Since Bitcoin trading has been supported by eToro since 2014, one major reason for this surge can be attributed to the platform’s addition of Etheurem in the beginning of the year.

The price of Ethereum has jumped from about $15 USD per Ether (ETH) to over $65 today in just the past two months. This is reflected in 90% of Ethereum traders buying the asset since it was launched on eToro. Meanwhile, 80% of Bitcoin traders have been buying up the cryptocurrency for a consecutive fifteen months, eToro notes. 

It should also be noted that eToro provides a feature called “copy functionality.” This lets novice users copy the trading strategies of its most successful cryptocurrency traders.

‘Cryptocurrency is the Future of Forex’

Commenting on this impressive growth, Senior Markets Analyst at eToro, Mati Greenspan, believes that “Cryptocurrency is the future of forex.”

[O]ver the last 12 months we’ve seen a 4x growth in traders accessing this market. But the volume of trading has exploded even more than this, with a huge 4,500% jump.

As the total cryptocurrency market capitalization recently passed $30 billion, Greenspan explained, that its users have been reaping ‘significant rewards’ from this jump in prices and a nascent market that has doubled in just the past four months. 

“The rapid growth in the adoption and price of cryptocurrencies only marks the first few steps on the long-journey to establishing cryptocurrencies as a dominant force in forex trading,” he continued.

We expect cryptocurrency trading volumes to get much bigger over the coming years.

As Bitcoin is once again above Gold market price, surging to record highs, the cryptocurrency market should continue to attract even more traditional investors looking for the next big thing.

Recent news of the Securities and Exchange Commission (SEC) willing to review its rejection of the Winklevoss Bitcoin ETF is just the latest in a string of positive news for traders to be bullish on Bitcoin and cryptocurrencies as a whole.

Will the cryptocurrencies market continue to attract traditional investors or will we see another repeat of the dot-com bubble? Share your thoughts below!


Images courtesy of Shutterstock, Twitter, eToro

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Dub 24

Bitcoin is Outperforming Every Fiat Currency So Far in 2017

· April 24, 2017 · 5:00 am

Bitcoin price is now up almost 30% since the start of the year as the world’s first decentralized cryptocurrency shakes off regulatory woes and internal politics.


Outperforming All Fiat, Almost Every Stock




Who needs an ETF when you can just buy BTC? Bitcoin price is up almost 30% since the start of 2017 when the latest bull-run was just warming up.

Since January, the world’s first decentralized cryptocurrency has shrugged at its ETF rejection, Chinese exchange woes, and hard fork fears to once again take the lead over all fiat currencies for the third straight year.

Bitcoin price is also seeing bigger gains than most popular stocks including Apple, Facebook, Amazon, and Google to boot.

What’s more, Bitcoin is not even the best performing cryptocurrency so far in 2017. Dash, Ethereum and Monero have all had an even better year to date, according to blocklink.info.

From the traditional sphere of finance, only Moneygram (50%) and Tesla (41%) stocks saw a bigger increase than Bitcoin price. Additionally, Gold, whose price per ounce was matched by BTC in the beginning of March, has also seen an 11% gain this year, also outperforming all fiat currencies amid global economic uncertainty.

Meanwhile, the top three fiat currencies thus far include the Mexican Peso (11%), Russian Ruble (10%), and the Japanese Yen (6%).

At this rate, traditional investors should take notice as BTC is positioned to reign supreme over all national fiat currencies in seven of the last eight years. The only year Bitcoin price saw a decline was 2014. 




Bitcoin Price Aims for Higher Highs in 2017

There are several reasons for why Bitcoin price is currently climbing as explained here. However, the biggest factor at the moment is the increasing possibility of Segregated Witness (SegWit) activation.

First and foremost, SegWit technology is a transaction malleability fix. Additionally, it also raises network transaction throughput, which is expected to alleviate scaling limitations for the time being.

Meanwhile, the push towards SegWit in other cryptocurrencies such as Litecoin, Syscoin, and DigiByte has resulted in a major price increase for each one. Now, many commentators are expecting Bitcoin price to break its all-time high of around $1,277 USD as SegWit activation is becoming more likely this year.

Litecoin price has quadrupled after its founder Charlie Lee announced supporting SegWit with activation now imminent. Bitfury CEO, George Kikvadze, believes BTC price could also rise significantly following SegWit activation on Bitcoin.

Simultaneously, support for a competing solution, Bitcoin Unlimited, appears to be waning. Today, its node count has plummeted from about 730 to 259, according to Coin.dance, though the exact reason is not yet clear.

Moreover, 88% of Bitcoin businesses now “support” or are “ready” for SegWit with 6% against. While 23% support Bitcoin Unlimited’s Emergent Consensus proposal with 30% against.

Will Bitcoin once again be the top dog by the end of 2017? Will it break its all-time high? Share your thoughts below! 





Images courtesy of Shutterstock, Twitter, Blocklink.info

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Dub 21

7 Reasons Why BTC Price is Now Climbing to $1300

· April 21, 2017 · 9:00 am

Bitcoin price now appears to be shrugging off politics that have split the community as it looks to test the critical $1,300 mark yet again.


Key Resistance Level at $1,300

BTC price is again coming within striking distance of the critical $1,300 mark, currently sitting at $1,250 at press time. 

Back on March 6, Bitcoin set the all-time closing high of $1,277 with a record-high spike of around $1,330 a few days later fueled by ETF hype before crashing more than 25% after the rejection by the Securities and Exchange Commission.

But the world’s first decentralized cryptocurrency has rallied since its March 24 low of $960 when divisive politics and heightened fears of a hard fork put downward pressure on the price. 

What’s more, the resurgence also comes at a time when Chinese exchanges have still not resumed their Bitcoin withdrawals.

In addition to being up 30% so far in 2017, Bitcoin’s market capitalization is now looking to break its all-time high of about $20.6 billion as it climbs towards the critical $1,300 resistance level.

“$1300 is a significant psychological price point,” Civic CEO, Vinny Lingham, wrote back in February. “This is the point that arguably no one who had previously bought coins during the last ‘bubble’ is under water.”

7 Positive Trends Driving BTC Price

With Litecoin coming closer to SegWit activation, many hope that the ‘silver to Bitcoin’s gold’ will become a testbed for this promising technology. This has made Litecoin price rise significantly in recent weeks while also raising hopes for SegWit activation on Bitcoin while allaying fears of a contentious hardfork.

However, this is only one positive factor in what has been a string of good news for Bitcoin in recent weeks.

First, Japanese businesses and several major retailers already seem enthusiastic about experimenting with Bitcoin payments following their legalization in the country on April 1st.

Second, Bitcoin adoption appears to be growing everywhere in the world from P2P trading to remittances to the amount of people actually using it for payments, according to a recent Cambridge University study, which noted:

[T]he number of people using cryptocurrency today has seen significant growth and rivals the population of small countries.

Third, following increasing regulatory clarity from China, Russia may also be planning to ‘legalize’ Bitcoin by as early as 2018. Meanwhile, another major economy, India, is seeing major growth with people increasingly using Bitcoin as a store-of-value and for online purchases in the wake of the demonetization disaster.

Fourth, the traditional global banking system including SWIFT appears to be under constant attack from hackers, not to mention the NSA. As a rule, any weakness and uncertainty in the traditional financial spells good for a potentially better alternative that’s more secure due to its decentralized, pseudonymous natures and immutability aspect.

Fifth, major companies such as Microsoft are beginning to actually use the Bitcoin blockchain for other things besides money such as record time-stamping and document verification. This could introduce more use cases for the Bitcoin network, boosting its development, growth, and overall value as a result. 

Bitfinex Sticking Out Like a Sore Thumb

Another major factor in the upward pressure on BTC price is Bitcoin exchange Bitfinex, which seems to be experiencing problems on the fiat side due to recent complications with partner banks. There also seem to be problems with liquidating the USDT (Tether) cryptocurrency token that replaces the USD currency on the Poloniex exchange.

Therefore, it comes as no surprise that Bitcoin on Bitfinex is trading at nearly $1,330 or $80 above market price as traders seek safety. Of course, the solvency of the Bitfinex exchange is also coming increasingly under question despite official statements to the contrary.

[Editor’s note: It remains to be seen whether this is a positive or a negative factor for the BTC price in the short term. However, shaking out insolvent businesses should be a healthy step for the Bitcoin economy moving forward.] 

In any case, Bitcoin should continue to chug along as its overall growth since 2014 has made it more resilient and much more capable of withstanding another ‘Mt.Gox’ scenario if it arises.

Will Bitcoin finally break the $1300 psychological barrier? Share your thoughts below!


Images courtesy of coinmarketcap.com, shutterstock 

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