Reports of its death were greatly exaggerated.
Earlier this year, there were people in the tech and financial sectors claiming that “Bitcoin is dead“. But the cryptocurrency has defied the odds and is on track to be valued at $US1000.
The first time Bitcoin reached $US1000 was back in 2013. Since then the cryptocurrency has endured a number of controversies and hurdles that led to a slump in value.
But 2016 has seen a 122 percent surge in Bitcoin’s value. As of today, the cryptocurrency is valued at $US978 ($AU1339) per Bitcoin. There are predictions that it is likely to hit that $US1000 mark again very soon.
But why is this happening? Nick Colas from global brokerage and trading firm Convergex told CNBC:
“It is one tool that many people around the world use to try to preserve wealth… Bitcoin has gone from being just a nerd’s version of gold years ago to now being another thing people do to try to hold onto their wealth.”
As China’s financial situation and its currency, the Yuan, continues to become more volatile, it will likely drive up the price of Bitcoin.
[CNBC]