As Chinese investors continue to flock to the cryptocurrency and additional companies accept it as a form of payment, the value of Bitcoin has surpassed USD 2000 for the first time in history
After climbing rapidly for the past few weeks, the value of Bitcoin has surpassed USD 2000, setting a record and further cementing its place as the world’s most valuable cryptocurrency.
Bitcoin’s price has increased more than four times over the last year. The cryptocurrency’s recent rise is due to two main factors. With more than 85 percent of global Bitcoin trading coming from China, Bitcoin has developed into somewhat of a safe-haven asset for Chinese investors over fears the Yuan could depreciate further.
The price rise is also thought to be attributed to the cryptocurrency becoming more mainstream in the last year as additional companies accept it as a form of payment. Microsoft, Subway, Expedia and Wholefoods as well as many other well-known companies now accept Bitcoin as a form of payment.
Charles Hayter, Co-founder and CEO of CryptoCompare weighed in on the importance of the historic price level, saying,
“As a psychological level, bitcoin hitting $2,000 is an important milestone and will generate further interest that could boost the price further.”
Polinex exchange, which trades in numerous virtual currencies, addressed its community about the Bitcoin rise, stating,
“We have never seen such enthusiasm for trading blockchain tokens as we have in the past few months. Since January, we’ve seen an increase of more than 600% active traders online and regularly process 640% more transactions than we did merely 4 months ago.”
Overall, it will be interesting to see where the Bitcoin price will go from here. The cryptocurrency is in uncharted price territory, but has been known for its wild swings in value. If demand subsides in China or new regulations are introduced, we could see a dramatic drop in price.
More Here [coindesk]