Yesterday we were surprised when Bitcoin hit $12,000 and it has risen massively again today breaking the $15,000 barrier for the first time. At the time of writing, Bitcoin is sitting at $15,258 according to Coinmarketcap.
The cryptocurrency has seen massive gains this year. It started out at just under $1,000 back in January and had risen throughout the year, although the biggest gains have happened recently.
The Meteoric Rise of Bitcoin in 2017
In January, Bitcoin was just under $1,000. It then rose to $2,000 in May, $3,000 in August, and $5,000 in October. In November, it broke the $7,000 barrier and has now doubled in price since then. The rapid increase in value has caught the attention of both investors and regulators worldwide.
At the end of November, Bitcoin rose to $10,000. This was on the 28th of November, and its value has increased by 50 percent to over $15,000 in just over a week. Whether the cryptocurrency will continue to make these gains remains to be seen.
Factors Contributing to Bitcoin’s Surge
Several factors have contributed to Bitcoin’s unprecedented rise. One of the primary drivers is the increasing acceptance of Bitcoin as a legitimate form of payment. Major companies like Overstock and Expedia have started accepting Bitcoin, which has boosted its credibility. Additionally, the launch of Bitcoin futures by major financial institutions has also played a significant role in its price surge.
Another factor is the growing interest from institutional investors. Hedge funds and investment firms are increasingly looking at Bitcoin as a viable investment option. This influx of institutional money has added a layer of legitimacy and stability to the cryptocurrency market.
However, it’s not all smooth sailing. Earlier this week, we heard that the UK and European governments plan to regulate Bitcoin. This move aims to curb illegal activities and bring more transparency to the market. While regulation could potentially stabilize the market, it could also deter some investors who are attracted to Bitcoin’s decentralized nature.
We also heard earlier today that Steam is no longer accepting payments with the currency due to the high transaction fees. This decision highlights one of the significant challenges facing Bitcoin: scalability. As more people use Bitcoin, the network becomes congested, leading to higher transaction fees and slower processing times.
Despite these challenges, the overall sentiment around Bitcoin remains bullish. Many experts believe that Bitcoin still has room to grow, especially as more people become aware of its potential as a store of value and a medium of exchange.
In conclusion, Bitcoin’s rise to $15,000 is a testament to its growing acceptance and the increasing interest from both retail and institutional investors. While there are challenges ahead, including regulatory scrutiny and scalability issues, the future looks promising for Bitcoin. Whether it will continue to make these gains remains to be seen, but one thing is clear: Bitcoin is here to stay.
Source Coinmarketcap
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