Bitcoin Price Makes Strong Gains
The Bitcoin price (BTC price) reached a three-year high on Wednesday, surpassing the $800.00 mark for the first time since late 2013.
The flying Bitcoin price is the beneficiary of a strong U.S. dollar and a flagging Chinese yuan. The BTC price is also high because Bitcoin is a hedge against a potentially uncertain world market. When economic times have been unstable, the BTC price has made strong gains. (Source: “Bitcoin surpasses $800 for the first time in 3 years,” MarketWatch, December 21, 2016.)
This year has already had a solid showing for the cryptocurrency, with the Bitcoin price gaining 83% since the beginning of 2016. While the incoming U.S. President Donald Trump has sent some parts of the economy soaring (see the numerous stories on the Dow Jones Industrial Average (DJIA) hitting 20,000), others are more tepid, raising concerns about just how sustainable these gains will be, making BTC a favorable hedge.
Aside from the U.S. presidential election, a number of events in 2016 served to help the BTC price. Brexit, for instance, was another cause for Western traders to push the Bitcoin price higher as investors sought refuge from a now-uncertain financial future in the U.K., at least as far as the European Union-Britain relationship is concerned. Other elections across the EU that threaten the single market also prodded some to put their trust in Bitcoin versus more traditional currencies.
But it’s not only China and the West that are gobbling up the online currency, thus driving up the Bitcoin price. India has several startups taking advantage of the demonetization crisis, in which two widely circulated bills are being rapidly phased out, sending many Indians flocking toward gold, silver, and Bitcoin in order to secure their finances. (Source: “How India’s Demonetization Is Affecting Bitcoin Startups,” Forbes, December 21, 2016.)
As far as Wednesday’s surge is concerned, the BTC price push is being mainly generated by pounds, dollars, and euros.
While Wednesday’s high of $826.00 per 1 BTC is a great Bitcoin price for all those holding, the currency is not without its risks. Beyond the market, investors would be well served to ensure that their Bitcoin hoard is secured from hackers, as all transactions involving BTC are irreversible, and this has cost some owners millions of dollars in the not-so-distant past. (Source: “Hackers Have Stolen Millions Of Dollars In Bitcoin — Using Only Phone Numbers,” Forbes, December 20, 2016.)