Bitcoin is starting the year by rising above $1,000 for the first time in three years after its value reached $1,163 in 2013. With this, it outperformed all central bank issued currencies by having a 126 percent climb in 2016 according to Reuters.
Bitcoin is web based and is known to be a volatile currency. After a hack on the Tokyo based Mt. Gox exchange after its $1,100 peak, it fell below $400. Now hotly sought in China and some African countries, it has received a boost with an average 10 percent growth in 2016. The recession in countries like Nigeria and the election of Donald Trump in the United States have somehow contributed to the growth of Bitcoin especially into the last quarter of 2016. Uncertainties in central bank issued currencies including the Chinese Yuan which is at its weakest point in 20 years have mostly contributed to the rise in demand of the digital currency.
In India where Prime Minister Narendra Modi removed high denomination notes from circulation, Paul Gordon, a board member of the UK Digital Currency Association and co-founder of Quantave told Reuters that “the growing war on cash, and capital controls, is making bitcoin look like a viable, if high risk, alternative,” Paul’s firm I must add is one of those trying to make it easier for individuals and companies to trade in digital currencies.
With increased demand, there are now 12.5 bitcoins added to the systesm every 10 minutes to cater for the demand. Bitcoin is now valued at $16b and as Reuters puts it, the same as that of an average FTSE 100 company.
Paul Balo is the founder of TechBooky and a highly skilled wireless communications professional with a strong background in cloud computing, offering extensive experience in designing, implementing, and managing wireless communication systems.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behaviour or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
