Bitcoin Rallies Above $1000 For The First Time Since 2013
Bitcoin the foremost favorite and popular when it comes to cryptocurrency has been on a wild ride. Seven years ago a buddy of mine traded 5000 bitcoins for a computer that was maybe worth $450. He’s probably kicking himself the way Ron Wayne did when he realized what he gave up with Apple.
The cryptocurrency. that has no actual regulation but rather depends on the users of the massive computer network controlling it, was finally valued about $1000 for the first time since December 2013. This morning, one bitcoin was valued at $1,022.00 on the Europe based Bitstamp exchange.
More tech savvy people have gravitated towards Bitcoin in the past several years. Retailers like Overstock.com actually accept Bitcoin as a valid form of payment. Bitcoins are mined through a data intensive process. 12 bitcoins are added to the system every 10 minutes.
2013 was the biggest year for Bitcoin. At one point one Bitcoin was worth $1163, the highest it’s ever been. Bitcoin then took a dip in 2014 and 2015. It began to level off in 2016 and over the past 12 months it’s seen it’s value appreciate around 137 percent. Bitcoin started running up like gangbusters again after Donald Trump won the presidency in November.
“The growing war on cash, and capital controls, is making bitcoin look like a viable, if high risk, alternative,” said Paul Gordon, a board member of the UK Digital Currency Association and co-founder of Quantave, a firm seeking to make it easier for institutional investors to access digital currency exchanges.
“We are seeing the aftermath of zero interest rates run amok. So bitcoin is a healthy reminder that we don’t have to hold on to dollars or renminbi, which is subject to capital controls and loss of purchasing power. Rather it’s a new asset class,” Bobby Lee, chief executive of BTC China, one of the world’s largest bitcoin exchanges, told CNBC by phone
Over the past three years several startups focused on Bitcoin have surfaced. The Consumer Technology Association (CTA) is hosting a forum on Bitcoin during CES later this week.