To everyone amazement, Bitcoin hits $10,000! This major psychological barrier was overcome, much sooner than anyone could have hoped for. According to the Coinmarketcap website, today Bitcoin reached its biggest milestone yet.
It doesn’t come as a big surprise for most crypto enthusiasts. We have all been closely following Bitcoins’ bullish run this year, and everyone’s expectations were set high. As high as the moon! And it happened today, one month sooner than even the most daring of predictions forecasted.
Now that this massive psychological barrier has been broken, Bitcoin can look at landing on Mars or Jupiter 😉 The next major milestone of $100,000 seems more realistic than ever before.
What is driving the growth of Bitcoin?
There is a mixed bag of plausible reasons although, no one can know exactly why at this stage. Noone can really gauge what the real value of Bitcoin is at the moment as it is still mostly based on speculation.
One of the major drivers seems to be pure hype. As more people find out about Bitcoin and start using it (and inevitably fall in love with it) they start spreading the awareness on. Perhaps, it is then not such a great surprise that we had one of the steepest bull-runs over Thanksgiving, when people in the USA get the time to share things like this with their family and friends.
Another contributing factor could be the failing economies in many countries around the world, where inflation and corruption is the norm. People from these countries are desperate to find a way to preserve their wealth and so the naturally opt for storing it in Bitcoin instead of the local currency. It has been widely reported that Bitcoin is currently trading at $17,000 in Zimbabwe.
We also have a lot of economic uncertainty even in some of the richest countries in the world. For example, the predicted negative financial consequences related to Brexit in the United Kingdom and the EU may be having an effect on peoples’ willingness to invest in alternative assets.
The failure of the forked Bitcoin Cash coin, to hijack/or replace “the real Bitcoin” has also boosted the confidence in the oldest cryptocurrency and the Bitcoin Core team who are working tirelessly on resolving the inherent scaling issues.
Last month, the price shot up to a record high after the largest regulated FX marketplace, CME Group unveiled plans to introduce bitcoin futures by the end of 2017.
Will it stick?
We do not make any financial predictions, but a consolidation is to be expected at this stage. Stay tuned!