In just one year, Bitcoin has shown phenomenal growth. The currency which started with under $1,000, has now reached over $10,000 mark in a year.
For the first time, Bitcoin price has crossed the important barrier of $10,000 mark on Tuesday. At the time of writing, the Bitcoin price is now already flirting with USD $11,000. As per coinmarketcap, it is trading at USD $10,919!!
The year 2017 has been remarkable for Bitcoin. Finally, for the first time, bitcoin price crossed the extremely important $10,000 threshold on Tuesday. The global average bitcoin price has pierced the five-figure barrier, rising to a new all-time high and is showing no signs of stopping. It has moved impressively over the Thanksgiving weekend as Black Friday saw the currency hit new highs in the upper $8,000s before exceeding the $9,000 level on Saturday and then right away moving toward the $10,000 mark on Sunday. These price increases come on unusually high volume, with fear of missing out (FOMO) bringing new investors into the space at rapid pace. At the time of writing, Bitcoin price as per coinmarketcap is at USD $10,919!!
In just one year, Bitcoin has shown phenomenal growth. The currency which started with under $1,000, has now reached over $10,000 mark in a year. This exceptional growth rate was made possible with the increasing mainstream adoption in addition to massive trading volume. In just the past 24 hours Bitcoin’s trading volume has surpassed $5bln.
Bitcoin is now trending and has gained the spotlight in the mainstream media. All the year round, there were announcements that indicated the extensive growth and acceptance of Bitcoin. As such, the widespread coverage by mainstream analysts was followed by huge growth in Bitcoin hedge funds and institutional investors. Thus, it has become impossible to ignore Bitcoin and big bankers can’t keep mum about this bitcoin wave. Now the launch of regulated futures markets is imminent, and Bitcoin has become the investment du jour of the financial community.
Moreover, the growth in hedge funds that invest in cryptocurrencies has also surged. As compared to earlier part of the year when 70 new funds could make news, now even 120 new or modified crypto related funds has become something usual.
Though seemingly a psychologically-significant barrier, the bitcoin price cruised through $10,000 with relative ease. Bitcoin futures will soon be traded on major regulated markets as two of the world’s largest futures markets, Chicago Mercantile Exchange (CME) and the Chicago Board of Options Exchange (CBOE) will launch Bitcoin futures. This is yet another significant factor which led to Bitcoin’s meteoric gains.
With rising adoption rate, the network also needs to maintain the same pace. As the price soared, Bitcoin maintained a huge transaction volume with the daily transactions over $2 bln at present. As the market increases, the mining returns also increase substantially and Bitcoin mining becomes ever more lucrative. Miners today make $1.5 mln daily in fees alone, excluding block rewards.
Apart from that, the rise in the number of Bitcoin ATMs is also to be credited for the growth in global access. Daily somewhere around 4.8 Bitcoin ATMs are installed and those numbers will only continue to grow as new ATM companies come online.
The whole global community has begun to embrace Bitcoin and the international transaction numbers have been mounting up since Bitcoin’s debut. Since the growth rate is astounding, it is important to understand the fact that the adoption is not localized, but global, and nearly uniform. The technologically advanced countries have higher adoption rate, however, others are also quickly catching up.
Now, as the new users will purchase at the current price, the price will further go up. Thus, as adoption continues to grow, Bitcoin’s price will likely go higher in the long term. This could just be the beginning, as the analysis of volume and transactions is showing that Bitcoin is not in bubble territory, rather more and more people are increasingly becoming aware of cryptocurrencies. It seems Bitcoin’s spectacular gains are going to continue unabated for some time.
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