Bitcoin, the leading cryptocurrency in the financial market is as expected breaking new records. Bitcoin has been the most talked about topic when it comes to cryptocurrency discussions. Back in August 2017 is when Bitcoin started to gain new heights at a tremendous speed. Bitcoin first broke the $4,000 threshold in August and now just over two months Bitcoin sets a new record by breaching the $6,000 mark, on Friday the 20th of October. With this increase in Bitcoin, it has proven to have gained 500 percent in value this year.
For a digital currency like Bitcoin to increase to such heights in such a short amount of time is not something to happen often, especially in such a volatile market. However, a lot of traders and experts say that the increase is because of the volatility in the market. Never before has this market been so volatile, this huge increase happens just three days after bitcoin suffered its biggest decline within 24 hours. Right after the drop, the price of Bitcoin rose with $500, allowing the cryptocurrency to break the record of $6,000.
More Volatility on the Way
Investors are sitting back to see what will happen next, as Bitcoin is unpredictable. On the 17th of October Bitcoin even fell as much as 8.4 percent after the Commodity Futures Trading Commission released a primer on virtual currencies, reiterating its view that virtual tokens can fall under its authority. But even with such a volatile market, there needs to be something behind this increase in Bitcoin value? Fingers are being pointed at the cash shortage in Zimbabwe to be a possible cause for the increase. Another reason believed is the increase in margin trading.
The end of week rally is another sign that the threat of oversight won’t affect Bitcoin’s approval across the world. Even with recent events concerning cryptocurrency in China, Bitcoin has still managed to come away unscathed. With Bitcoin being on the track that it’s on right now investors are beginning to see Bitcoin as a gamble, due to the fact that Bitcoin’s future is hard to downright impossible to predict right now. Sceptics are even saying that the bubble will burst soon just like it did back in 2013 when the value of Bitcoin plummeted on The Silk Road, (The so called online black market). While others are saying that the upcoming fork in November will just increase its value even more.
In March of 2017 the price of Bitcoin even surpassed gold, which is the most popular trading mineral in the world. Based on Bitcoin movements like that, and the records Bitcoin is currently breaking in the market, experts have determined that by 2022, the value of one Bitcoin unit can be worth more than $20,000. This, however, is not a fixed price, it’s just a prediction.
A New Phenonminon
The interesting thing is that Bitcoin was never such a rapidly increasing investing opportunity. Bitcoin only started to increase at such speeds in 2016 when there was a buying spree led by China, mainly from people trying to escape the Yuan’s devaluation. With the increase in Bitcoin’s value in 2016, by 2017 the price of a Bitcoin unit was already at $1140. From Bitcoin’s value of $1140 begin 2017 to now breaking the $6,000 mark it makes sense as to why people believe that the price can go up to more than $20,000 in under five years.
The only threat that can come across Bitcoin’s path is possible competitors surfacing but Bitcoin investors who have made a lump sum of the cryptocurrency to this far all say that since Bitcoin was the first, no competitor will ever be a real threat. The other thing that can effect Bitcoin’s future will be changes in regulations, luckily changes in regulations won’t affect Bitcoin globally, only the country the changes are taking place in.
As long as Bitcoin continues to reach new heights and set records, this type of cryptocurrency will have a skywards future, and Bull candles will be the only sight to see in the marketplace until something happens to change that, but right now no one can predict acridly enough as to what the future for Bitcoin holds.