Bitcoin Is Soaring; Nearing 3 Year High

Bitcoin has been doing really well as of late. Its price has steadily been creeping upwards to the point that it’s almost at its former 3 year high of $1,023. Its all-time high was $1,137. Right now it’s sitting pretty at $962. Bitcoin is the first major step in the true digitalisation of currency. Online banking and ATMs and Credit Cards were all stepping stones. This is the real deal. Sure, it tanked big time in 2014 and people are still largely mistrusting of the digitisation of currency, but we’re all going there sooner or later.

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Bitcoin has registered steady growth over the last three months, rising 50% in value, and 30% just in the last month. In fact, it’s up $150 over the last week, when it was just shy of $800. It’s also doing very well against the pound; it’s valued at £782.49 at the moment, up from the £700 value it had in late November. This is in stark contrast to the great fluctuations in value it has been known for. For instance, in 2013, Bitcoin rose $500 to $1,100 from November 23rd to November 30th. It proceeded to drop to $700 a few days later. Just this year in July, it dropped from $660 to the mid-$500s. Bitcoin has certainly become a more stable commodity, though.

There’s no consensus on what’s causing it, though. It may just be that since services like Android Pay, Google Wallet, Apple Pay etc. have been seeing increasing use, people are slowly becoming more trusting of digital currency. So many of the things we use today are intangible; video games, apps, digital music, digital photographs etc., yet they all have value. They’re a large part of what drives the economy worldwide. So maybe we’re seeing the inevitable shift to digital currency, maybe this is the first steady rise. The Telegraph reported that Bitcoin’s rise could have something to do with the steady devaluation of the Yuan. Since most Bitcoin trading occurs in China, it could be one of the contributing factors for its steady rise. The same article also claims that the total value of Bitcoins worldwide may have reached $15 billion.

However, don’t let this push you into investing. Bitcoin is still fragile, unstable and lacks credibility among the world’s leading economists. Paul Krugman even went as far as to call it evil in one of his pieces on the New York Times.

Bitcoin was introduced to the world 8 years ago in January 2009. Though its creators remain unidentified, its popularity among users on the internet has led it to become the world’s first true digital currency.