The Reasons for the Bitcoin Price Rise
Observing the course of bitcoin during the whole history of existence, it can be concluded that the prices have not been higher than they were on the 10th of April 2013.
Observing the course of bitcoin during the whole history of existence, it can be concluded that the prices have not been higher than they were on the 10th of April 2013. The reason is very plain - the enormous was enabled by the financial crisis in Cyprus, which had an impact not only on the single country, but on the economics of the world.
The current price can be evaluated as the third biggest in the overall practice. It is interesting to find out why. The recent time has presented several interesting happenings and activities that might have caused the current price.
The first and possible the most important one is the closing of Silk Road and the arrest of Ross Ulbricht. In the beginning of October the most important questions that bothered the bitcoin community was whether the crypto currency will stand strong or collapse, because the black market was one of the pillars of the economy of the coin.
Custody of Ulbricht and termination of Silk Road did not crash the market, the system was able to withstand. The price has lowered, but gained its positions already on the next day. Still what led to the rise of the price? Some people might have been attracted by the news to a payment method they did not know. The new amount of users might have affected the growth of the price for a BTC. On the other hand, some might believe that the system got rid of the shadow part and become fully safe. Experts believe less in this reason – new similar pages have appeared recently. However this story is a month old, and its effect could not be that important now, it has already played it role.
The next possible reason is the USA government shutdown. People could have got worries, paralleled the situation to Cyprus and as a result trust grew in their minds for the crypto currencies such as bitcoin. The currency is decentralized, more than 21 million BTC cannot be mined, and no one is allowed to emit more. This might also make more people register new wallets.
Another important deal to be observed by specialists is the interest of China in Bitcoin. Baidu set the trend – one of their services now can be paid by bitcoins. A very high speed progress happens in China. The Yuan is under strict control of the local government, it is hardly convertible. Bitcoin offers a great alternative for such a growing and demanding market among other newcomers.
Still specialists warn that further fluctuations might happen, the introduction of policy and rules might stabile it faster, but it should happen in the most natural way as more people will use bitcoin regularly. If a proper market structure will be established prices might stay on the level they are on now. A global; approach might also minimize speculations of traders, which possibly will lead to reduction of prices. Still no one is ready to tell when the next drop of the price might occur.