Why Bitcoin Is Surging, Again, Up 130% This Year
- Author: Zachary Reyes May 24, 2017,
May 24, 2017, 1:11
The cryptocurrency Bitcoin has been surging this week, continuing some gains it produced over the weekend through interest from Asian investors.
Bitcoin's value has risen as a result of increased demand in China, despite a crackdown by the government, which claimed the currency is being used to take money out of the country. The decentralization and the anonymity of bitcoin surely lure more to divulge on the virtual currency market.
There are a finite number of bitcoins that can be "mined" - that is, made available after a complex math problem is solved. In the last week, several billion in United States dollars have flown into bitcoin, bringing its overall market value to more than US$37 billion on May 22, reported CoinDesk.
Trump has already talked about wanting the dollar to be weaker to help make the products of big United States multinationals more competitive overseas. However, the fact that cryptocurrencies aren't valued on tangible assets or revenue, we essentially have no idea how much the currency is worth, making a price surge particularly impressive.
The president also has some known bitcoin bulls in his administration as well.
Many experts also think President Trump's fiscal spending plans could be highly inflationary.
Bitcoin prices have even been rising sharply in spite of the cryptocurrency's ongoing scaling dilemma, an ongoing issue with its transaction capacity that members of the bitcoin community have been trying to resolve. In just three weeks, the valuation has climbed by about 50%, as Bitcoin topped the $2000 mark this week. But some are anxious that the party could end soon.
Several expressed concerns that prices will come tumbling down since bitcoin has been an extremely volatile investment over the past few years.
However, the price of Bitcoin again grew rapidly, recently surpassing the price of gold on a basis of an ounce to a coin, marking another record in the history of the currency.
Those are great points.
In recent past, digital money's popularity has become mainstream. Bitcoin is also capitalizing on the bullish run of some digital currency such as Lumens, Etherum, and Litecoin; and the overall turmoil in Brazil and U.S. makes up a big chunk bitcoin's gains due to the weakening dollar.