Bitcoin demand keeps growing, nears $6000 mark

Bitcoin demand keeps growing, nears $6000 mark

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JP-Morgan chief Jamie Dimon described Bitcoin as “fraud” and sent the course of the digital currency down in September. Just a month later, the digital currency reached a new peak. It rose above the value of 5000 dollars for the first time. Since the beginning of the year the price has quintupled. The rapid rise in digital currency has recently attracted many critics.

Particularly harsh words were found by JP Morgan’s chief Dimon: The recent rise in digital currency, the value of which had already quadrupled before Dimon’s criticism compared to the beginning of the year, was worse than the tulip bubble in the 17th century and “will not end well.”

But, Bitcoin hunts from one record to the next and is now targeting the mark of 6000 dollars. The crypto currency rose on Friday’s trading platform BitStamp by 7.4 percent to 5846 dollars. According to the Coinmarketcap website, the total volume of money generated by the computer is thus almost 100 billion dollars. The cyber currency trade is booming, Bitcoin is the largest and most popular. According to Coinmarketcap, there are now over 1000 different crypto currencies. Ethereum is ranked second with a market value of around 30 billion dollars.

Only two months ago bitcoin had surpassed 3,000 dollars, and after a period of continuous increases both bitcoin and other crypto currencies went through some difficult moments with the decision of China to prohibit the ICOs based on this type of virtual currencies.

Over the past few weeks, cyber currency exchange rates had been under massive pressure, with Bitcoin losing more than $1000 within a short period of time. The world’s largest trading place China had significantly restricted access to the currencies and several exchanged were closed. Russia also restricted trade. Russian President Vladimir Putin spoke this week about the risks associated with crypto-currencies, but also stated that “no unnecessary barriers should be built” to these new technologies.

Due to the popularity of Bitcoin, more and more investors are catching the train, driving the price up. According to analyst Mati Greenspan from the eToro trading platform, another reason for the current price rally is an imminent technical innovation at Bitcoin to accelerate the spread of the currency. According to him, the currency is to be shared and each investor is to be given for a bitcoin the split-off equivalent.

The Bitcoin is a digital currency, which was created not even ten years ago. Bitcoins are generated in complicated computing processes and traded on platforms on the Internet against classical currencies. The Bitcoin system uses the so-called blockchain technology. This is an encrypted database in which all transactions are stored. Unlike conventional currencies, bitcoin is not subject to any control by states or central banks. The courses can vary greatly.

Experts believe that the increasing number of companies that use ICOs as a financing model is jointly responsible for the latest price gains. In addition, the demand for Bitcoin & Co. remains high.

In addition, there are also speculations on an imminent technical innovation and a corresponding re-division of the currency pushing the price. On October 25, Bitcoin and Bitcoin Cash are expected to enter a third Bitcoin currency, the Bitcoin Gold. This is a good opportunity for investors, as they have the prospect of receiving a new Bitcoin Gold for each Bitcoin.

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Zac Berry is presently a full time editor at Market Morning. He covers the M&As and follows live market commentary. Before joining Markets Morning, Zac Berry worked with a start-up, where he worked in the capacity of a Team Leader tracking company events and results. Born in the U.A.E, he spent most of his growing up years in Dubai. Currently, he resides in U.S. and is pursuing his charter in Accountancy.

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