Bitcoin prices have seen a significant increase on Tuesday making prices hit a fresh high in 2016. During the summertime, statistics show that it had
Bitcoin prices have seen a significant increase on Tuesday making prices hit a fresh high in 2016. During the summertime, statistics show that it had reached a high of $781.31. This was during a time when traders were preparing for the halving process which involves the decreasing of rewards being offered to bitcoin users. As a result, it has made the digital currency supply much tighter. According to experts, the increase of bitcoin prices was mainly due to the mishaps in the Chinese stock market. They were mostly trading lower before they closed in to positive territory. This year, the Chinese yuan continued to fall compared to the US dollar.
According to Bobby Lee who is the chief executive of BTC China, this has resulted in the increase of bitcoin. BTC China is currently one of the biggest bitcoin exchanges in the world. Mr. Lee said in an interview, “When people wake up, they have to face the reality that bitcoin money exists only in the clouds. As a result, once you exchange a local currency such as the US dollar or Chinese yuan, you are ultimately exchanging physical money into money existing in the clouds. The good thing is that bitcoin money, amidst being in the clouds, has always been stable. It has always received low volatility and has great store value.”
Avid bitcoin users have stated that they believe the currency is actually evolving into a more mature state. The Chief Executive of bitcoin wallet startup block chain, Mr. Peter Smith said in a recent interview that the market for bitcoin money is quickly maturing. He added that it was clearly reflected in the movement of prices over the past few months. He believes that the growth the bitcoin currency received in the past few months have been very consistent each week. According to his calculations, the overall growth of the consumer business is looking very promising this quarter. He believes that it will double by the end of the year.
Within the past year, financial institutions have been rigorously researching about digital currency. However, they were not doing it in relation to bitcoin. Instead, they were focused on its impressive underlying technology, known as blockchain. It is a distributed ledger which keeps track of each and every transaction created using bitcoin. It is completely indestructible and cannot be tampered with. Financial institutions believe that blockchain technology can be used in various areas of their industry including asset trading and identity checking.