Bitcoin, the digital currency, has doubled during last month jumping to an all time high of $2,289.21 on Monday. The cryptocurrency is on its way to double during the ongoing month as price of Bitcoin this April 30th was at a level of $1,348.
Monday marked the seventh year anniversary of the digital currency, which at the time of inception was worth a quarter of a cent. To put the rise in perspective, if someone had bought $100 worth of Bitcoin in 2007, he’d be sitting on $75 million today.
The rise in the value of the currency during the last two months has increased owing to numerous factors including Bitcoin’s legitimacy in China and Japan. With the advent of digital economy, the payment system is moving form paper based currency to more sophisticated forms of payment systems. Bitcoin has gained most from this shift in the payment system in the last 7 years. The value of Bitcoin rose by more than 165% during 2017, and is anticipated by major financial institutions to continue rising till the year end.
Many theories have surfaced to develop a cause and effect reasoning for the Bitcoin’s rise in the first quarter of 2017. Many believe that the Chinese search for safe investment may have pushed the value of the cryptocurrency in the last few years. But the rise of last few months may have a different reason altogether. With Chinese investment’s percentage decreasing form 80% to 10% in total Bitcoin volumes since January this year, the price surge may have a different explanation.
Bitcoin mining involves solving a complex mathematical solution with the miner being rewarded in Bitcoin. This is how Hanyecz got his initial coins.
The cryptocurrency has many doubters as it continues to be associated with criminal activity, but it has still seen a stunning rally.