If you happen to have any interest in business and finance, you must have heard the news about Bitcoin and the sudden surge in its price. The price of Bitcoin has gone up from $1300 in April to a soaring $1,747.89 in May. The news came as a surprise for most of the world and it is easy to see why? This versatile commodity has had a rollercoaster ride since its inception but this year so far has seen a whopping 80% growth.
The cryptocurrency has seen its fair share of speculations and disapprovals. Ever since its invention, Bitcoin has faced a skeptical attitude from general public and businesses alike. The fact that Bitcoin is the first ever “decentralized” currency played a negative role as well. But at the same time, it has a lot of positive things going for it.
It Is Transparent
First of all, it has a high level of transparency in the form of Blockchain, the financial ledgers of the currency. The Blockchain records every transaction and analyzes it for authenticity. Making it easy to spot a fraudulent transaction.
Not Just A Currency
Bitcoin is nothing like any ordinary currency. It has the ability to play in a multi-dimensional field. It can be traded like gold, exchanged for other currencies, used online like plastic money and can even be used at retail as a replacement of card and cash.
It Goes Beyond Borders
The geographic borders do not bind Bitcoin. It does not need to be converted. It is quickly becoming the currency of choice for people relying on remittances and bank transfers from oversees. Just like the Internet, Bitcoin is bridging the gaps between nations while creating harmony.
The recent surge is caused by new developments and findings that have reinstated people’s confidence in this digital gold. Firstly, Japan has accepted Bitcoin as a legal payment method, causing a huge amount of Bitcoins to be bought alongside Yen. Secondly, Russia has also assured to consider accepting cryptocurrencies in 2018. Apart from that, there have been significant technological developments in another cryptocurrency, Litecoin. These developments have proved that the Blockchain can be expanded. This has given hope to Bitcoin users for expansion in Blockchain, which would greatly increase the speed of transaction among other things. All these factors have contributed immensely in elevating the value of Bitcoin.
Whether it is political, economical or natural, every event has an impact on the world’s economy. This unpredictability has always posed a threat to investments. But the future seems brighter for the Bitcoin as predictions have already been made for the Bitcoin prices to go up to $3000 – $4000 this year.