The price of Bitcoin has reached an incredibly strong point, having been above $2,000 since mid-May, and reached as high as a hair over $3,000 earlier in June 2017.
Considering the price was just under $1000 entering 2017, that range shows substantial growth. This indicates that Bitcoin is not only being taken more seriously as an investment asset, but also as a digital currency.
Here are a few reasons for those shifts:
Influential Economies Are On Board
We wrote once before that governments should be nervous about Bitcoin, and as it turned out many of them were. In particular some of the governments with the larger economies in East Asia were so wary of the spread of cryptocurrency that they specifically sought to outlaw it or restrict its usage. But during the course of 2017 some of these countries—especially Japan and China—have eased up on their stances regarding Bitcoin. That allows for more free market expansion, and likely accounts for a significant portion of the cryptocurrency’s growth this year.
Security Is Being Highlighted
The main benefit of cryptocurrency is meant to be its security compared to ordinary money and money storage systems. That’s something people have needed time to adjust to, but various developments have started to highlight security advantages. Perhaps most interestingly, we’ve seen online gaming platforms that deal with real money gaming adopting Bitcoin specifically because of added security and no transaction costs. This is a fun, casual environment where people are beginning to see added security having a practical benefit. In a more everyday sense, we’ve also seen the Bitcoin wallet business growing, with newer and more secure options being unveiled all the time.
More Merchants Are Accepting Payments
This is less of a specific point and more of a perpetual development. The longer Bitcoin sticks around with high usage and strong pricing, the more merchants will begin to accept it as a legitimate form of payment. This is happening both online and in stores, and it’s certainly contributing to demand.
The Forecasts Are Dramatic
As Bitcoin has strengthened, we’ve started to see some dramatic, and almost outlandish forecasts for where it’s headed. One recent analysis predicted that the price could hit $10,000 by 2021, and another suggested it could reach $100,000 in the next decade! Some are also calling for a significant correction in the near future, and Bitcoin has looked a little shakier in just the last few weeks as of the time of this writing. But the long-term projections are often sky-high, and that definitely makes people more interested in getting on board.