The Reasons for Bitcoin’s rising prices- above $5000

The Reasons for Bitcoin’s rising prices- above $5000

Last Thursday, the Bitcoin crossed the historical bar of the 5000 dollars.

Today it is next to 5683 dollars!

Some like Christopher Dembik, head of economic research at Saxo Bank, predict that it is likely to reach $ 10,000 within a year!

What are the parameters that explode the course of the first virtual currency?

Bitcoin is a virtual currency based on Blockchain technology, which means that this currency is based on a network of computers instead of the supervision of a bank or issuer, making it the first decentralized currency.

It has opened the door to more than 800 other crypto-coins since, and this world is attracting more and more interest from the public.

Bitcoin and Bitcoin Cash (born from the Bitcoin split) sell more than $ 750 million a day in the markets, and their total outstanding is close to $ 150 billion!

It is true that in September the value of the Bitcoin had fallen by 40%, but this was due to the decision of the Chinese Central Bank which prohibited the local platforms of Crypto Currencies to continue their activities because it accused them of encouraging “Tax evasion and illegal fundraising”.

But since the speculation has resumed more beautiful and the Bitcoin is doing well, thank you for him!

The decision of the Russian Central Bank to block the sites of sale of virtual currencies, on 10 October last, had no impact on the price of the Bitcoin.

Banks propose to invest in Bitcoin

The Swiss bank Falcon Private Bank now offers its clients to invest in the first virtual currency, and this is a first.

But for the moment these speculations are not regulated at all.

Market volatility

Nevertheless, it should not be forgotten that the market for these Crypto Currencies is extremely volatile, which is what makes it its strength for speculators, but also its weakness.

The Bitcoin Cash, for example, after having reached a market capitalization of 7.6 billion dollars in a few hours, was plunged a week later by half of this value.

Christopher Dembik said:

“The Bitcoin is the most volatile financial asset of recent years, it must find a foundation, that is to say a regulated framework to become a secure asset.

The CEO of JP Morgan Chasse had expressed serious criticism of virtual currency by calling it “fraud”.

The boss of the Goldman Sachs, Lloyd Blankfein him, does not share this opinion and even thinks to launch his bank in this market.

The President of the IMF, Christine Lagarde, also showed benevolence towards this currency by stating:

“For now, virtual currencies like the bitcoin do not call into question the existing order of fiduciary currencies and central banks, because they are too volatile, too risky, too opaque for the regulator. But many of these obstacles are technological in nature, and can be regulated over time “

France is working on a draft regulation concerning certain practices of Bitcoin, when in the United States, they plan to tighten the regulation against the financial frauds related to this currency.

And by the end of the month, the AMF (Autorité des Marchés Financiers) will implement a regulation for ICOs as well as virtual currencies.