Bitcoin price is going up, in fact, it’s skyrocketing.
Bitcoin value is up about 30% over the last month (December 2016), and it's up about 50% over the last 3 months.
The current Bitcoin price is lingering right around a very healthy $975.
Investors of all kinds are taking note, the last time Bitcoin traded this close to $1,000 was in January of 2014 when the Bitcoin price hit $1,023.
Take a look at the Bitcoin price chart below.
Bitcoin Price Rally Seems More Stable Than Past Hikes
It's been well-documented, after the last huge Bitcoin price surge there was a huge Mt. Gox-related crash. Mt. Gox was a Bitcoin exchange based in Tokyo, Japan. To say the least, things went badly after the Bitcoin value shot up in 2014. But this current increase in the price of Bitcoin doesn’t seem to have the same rapid and wild fluctuations that we've seen before. As shown in the Bitcoin Price chart above – the price of Bitcoin has increased by 50% but it's been relatively steady, then going up sharply around Christmas time.
Another positive thing of note is this, unlike recent Bitcoin Price fluctuations that were somewhat tied to events like the Bitcoin Core or halving updates, this price rally doesn’t seem to be caused by any kind of update.
Price of Bitcoin May Be Benefiting From Global Economic Fragility
One thing that many experts are speculating is that worldwide economic uncertainty is having a great effect on the price of Bitcoin and its surge, experts point to major financial shake-ups like the various global restrictions on sovereign currencies.
The Chinese government, for example, made it more difficult for people to move the nation’s currency and spend it overseas, leading to trapped liquidity. That has caused Bitcoin, which is not controlled by any government or central bank, to become a more attractive option.
From capital controls in places like China to isolationist rumblings in the U.S. and U.K. as well as, Bitcoin supporters say, increased recognition from companies and consumers.
Venezuela and India banned their largest-circulating bank bills in a bid to make it more difficult to buy contraband and pay illegal bribes in cash. Governments all over the world are heightening the reporting standards of assets abroad and using more resources to find out where and how illegal cash circulates. It’s part of efforts to combat corruption and terrorism financing following graft scandals spanning from Europe to Brazil. These financial clamp downs are boosting demand for Bitcoin from people around the world who want to receive and send cash without all the hassle and oversight.
Bitcoin Value Caused By Slowed Supply Growth? Very Possible...
Another huge factor why Bitcoin price is looking up may be the slowing down of Bitcoin supply growth, with so-called Bitcoin miners getting fewer electronic coins in exchange for letting the network use their computing power. The payment to owners of the computers that verify Bitcoin transactions and record them in a public ledger known as the blockchain fell by half in the middle of 2016.
Bitcoin is also enjoying the benefits of increased usability for normal people.
“Bitcoin is coming into its own,” says Tim Draper, a venture capitalist who’s bought thousands of Bitcoins over the past few years. “There are starting to be consumer uses for Bitcoin, and if people have any concerns about their own fiat currency -- the rupee, for example -- they flee to Bitcoin as an alternative currency.”
One anecdotal sign that Bitcoin as a consumer spending product may have more legs than people think – Airbnb CEO Brian Chesky asked for product suggestions for 2017, and accepting Bitcoin payments was the number one most requested feature for the company. People are also creating ways to use Bitcoin to buy products from Amazon at discount rates.
Reactions To The Bitcoin Price Rise on Twitter
Best part of having invested in 19 bitcoin exchanges around the world is we get to see their monthly volumes...
Folks, it is happening
— Barry Silbert (@barrysilbert) December 28, 2016
The current rise in #bitcoin price is movement caused mostly by the "insiders". The public is slowly waking up. We have seen nothing yet.
— Henry Brade (@Technom4ge) December 27, 2016
— CoinDesk (@coindesk) December 28, 2016
Will Bitcoin Price Keep Rising in 2017?
Without a doubt, it will be very interesting to see what 2017 holds for Bitcoin value. While the general consensus was that Bitcoin as a consumer payments platform was dead (in favor of enterprise-focused solutions like custom Blockchains) that may prove to be false after all.
The way that Bitcoin price is rising is causing many to realize that it may be time to learn more about the digital currency giant, it seems like it will be around for a while. Will bitcoin price keep rising though? That's a bit harder to predict, although many experts are expecting Bitcoin price to pass $1,000 in 2017, some have even speculated up to $2,000 within the next 5 years.
We shall see soon enough.