Cryptocurrencies are hot commodities again, and Bitcoin is leading the charge. According to CoinDesk.com, Bitcoin reached an all-time high of $2,061.88 as recent as May 21, 2017. That is an increase of more than 4.5%. However, the rally did not stop there. Bitcoin broke its previous record by closing at $2,760.10 only six days later. Japan seems to have counted for nearly 55% of the trade volume, which is up from the near 40% that Japan used to trade. The raised volume could be related to Japan legalising the cryptocurrency in May this year. The rise in the Asian market is not only led by Japan. Analysts talking to Reuters reported that South Korea is also behind the rally. These combined forces have made Bitcoin trade in Asia at $300 above the global average, based on CryptoCompare.com.
Even though the currency has since settled to $2,280.23, analyst remains bullish on the cryptocurrency. CEO of BTCC in Shanghai, Bobby Lee, stated that the global macroeconomic environment, which has seen sustained low-interest rates, is the conductor to investment in alternative assets, like gold and Bitcoin. Furthermore, a future rally is about to be formed. This one appears to be driven by new buying from smaller retail investors. That suggest that Bitcoin is started to be more widely accepted by the general public. Kim Jin-Hyeon analyst at Coinones added: “There were some people that made a big profit in a short time and it got more media attention. Then even people that hadn’t known about virtual currencies began coming in, thinking it can be a way to make big money in a short time.”
However, it is not only small investors driving the prices. Overall investor sentiment has seen a boost by other developments in the region. Mostly, airlines and other markets starting to accept Bitcoin as payment. Furthermore, the governments of Japan and South Korea are introducing a framework in which Bitcoin will be used alongside their national currencies. “In the past, Bitcoin was traded only by the people who have been dealing with crypto-currencies. This year, regular people are starting to join, making trading so volatile,” said one Japan analyst to Reuters.
Lastly, the recent price spike is also due to the scarce nature of the cryptocurrency. Bitcoins are created through mining. This is a process in which computers solve a complex puzzle in order to create a coin. However, the number of Bitcoins that can ever be created is capped at 21 million globally. Ergo, the new inflow of investors inflated the prices. The result of all these variables acting on the market is simple, it is time to get into Bitcoin. As more companies and people get familiar with the currency demand will grow. It is this demand that will create a steady inflation which can be exploited if you get into the market early enough.
The cryptocurrency market capitalisation has gained more than $5 billion in the past weeks. And it is expected to grow another $33.5 billion this year, according to CNBC. So it is time to start thinking of Bitcoin as a commodity alongside gold, or silver.
David Liciaga is a prolific MLM recruiter and internet marketer. He is most well known for single handedly recruiting 1600 people into the WakeUpNow program while building his team to 15,000 over a period of 18 months. During that period, he also debuted several products on JVZoo and gained the notoriety of being a top 10 seller on the platform.