Bitcoin Soaring Price as Year Ends
Bitcoin, a virtual currency, has a current value that has reached a three-year high. Each bitcoin now is equal to $970.92. In January 2016, one bitcoin is equal to $435 but its value has slowly climbed up for the past 12 months.
The slow yet continuous progress of Bitcoin
is the result of the depreciation of the Chinese Yuan for some time now. The regular attack of hackers to steal coins on virtual currency exchanges did not hinder the progress of increasing Bitcoin values.
BBC cited Reuters that said the Chinese Yuan had dropped 7% from its real value in 2016. Most of the currency trading for Bitcoin happens in China because it allows the traders to avoid the strict local laws that prevent Chinese people from how much money they can swap.
The founder of Cryptocompare, Charles Hayter, believed that uncertainty to the global political atmosphere and the moves of India in controlling paper currency are other factors that affect the people's decisions to get Bitcoins.
According to Wall Street Journal, Bitcoin is now considered the highest gaining currency globally for 2016. It is less than $150 below the price of gold per ounce which is currently priced at $1,145.
Just like gold, Bitcoin attracts investors who want to have some backing in times of economic uncertainty. However, this virtual currency has never traded more than the value of gold.
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| The bitcoin surge before the year ends is caused by devaluations in Chinese and Indian currencies. (/ YouTube Screen Shot) |
The slow yet continuous progress of Bitcoin
is the result of the depreciation of the Chinese Yuan for some time now. The regular attack of hackers to steal coins on virtual currency exchanges did not hinder the progress of increasing Bitcoin values.BBC cited Reuters that said the Chinese Yuan had dropped 7% from its real value in 2016. Most of the currency trading for Bitcoin happens in China because it allows the traders to avoid the strict local laws that prevent Chinese people from how much money they can swap.
The founder of Cryptocompare, Charles Hayter, believed that uncertainty to the global political atmosphere and the moves of India in controlling paper currency are other factors that affect the people's decisions to get Bitcoins.
According to Wall Street Journal, Bitcoin is now considered the highest gaining currency globally for 2016. It is less than $150 below the price of gold per ounce which is currently priced at $1,145.
Just like gold, Bitcoin attracts investors who want to have some backing in times of economic uncertainty. However, this virtual currency has never traded more than the value of gold.
