Bitcoin is boosting. The price has been doubled in a month. Especially in these some days, it is rocketing.
I am not sure why bitcoin is so strongly bought, but there are some hypotheses.
1. Friendly verdict of European Court
Recently, European Court made a historic decision admitting Bitcoin as money. It means that exchange between bitcoin and real currency is not subjected to taxation. This issue had been a great controversy since Bitcoin was born.
Financial Times: European court ruling bolsters bitcoin
2. Blockchain becomes famous
Blockchain, the technology underlining the maintenance of bitcoin, is attracting the attention of British government. The ministry of finance in the UK is aiming to utilize blockchain, investing 10 million GBP. A similar movement is also observed in the US.
3. Chinese economy
Some people consider the rise of bitcoin connected to the slowdown in Chinese economy. Not a few investors to Chinese market found bitcoin as a haven while China market is in peril.
Another hypothesis is simpler. Some speculators may control the price of bitcoin. Indeed, the magnitude of the recent rise of bitcoin is incredible. It is possible that the price will fall immediately, considering that Bitcoin is still more volatile than any other major currencies.
The Real Reason For the Rise In Bitcoin Prices
Two years ago, the price of bitcoin reached 1,000 USD. The bubble ended after Chinese government prohibited the trade with crypt-currency.
Anyway, the price will fall, more or less. I wonder when this festival will be finished, but every price rises and falls someday.
*Before posting this entry, the falling of the Bitcoin price began, ironically.