Bitcoin Soars to Over $1000, Its Highest Value in Three Years
The increasing popularity of bitcoin trading, thanks to its convenience, has been proved by the immense rise in the value of this digital currency.
The year opened with the big news that the value of cryptocurrency bitcoin has jumped over $1000 on the Europe-based Bitstamp Price Index (BPI). In three years - since November 2013 - this has been the first time that bitcoin has soared so high. It has managed to perform better than all currencies issued by central banks, and climb 125% in 2016.
Volatility Synonymous with Bitcoin
Let’s not forget that bitcoin has a history of volatility. After the historic tenfold rise in November 2013, when its value soared above $1,100, it plunged to less than $400 in the weeks that followed. But the past two years have seen it being more stable. In 2013, bitcoin used to experience daily price swings in the region of 40% but in 2016 the price swings were only in the region of 10%, though when comparing with flat currencies it still is significant volatility. Bitcoin is a web-based digital currency, also called a “cryptocurrency”. It does not have any central issuing authority. Instead, bitcoins are populated by computers all over the world and these computers also validate transactions.
Advantages of Bitcoin Trading
So this really is a great time for people holding bitcoins, with a single bitcoin costing over $1029.33. Bitcoin is increasingly being seen as a viable trading option. China witnessed increased demand in 2016 following a 7% annual fall in the Yuan’s value. This has been the weakest performance of the Chinese currency in more than 20 years. China is where bitcoin is traded the most and the Yuan’s fall seems to have contributed significantly to this.
Since bitcoin does not come under any authority, it can help move money globally, anonymously and faster. People trying to get around China’s capital controls find bitcoins useful for trading. There are also more bitcoins being circulated now than in 2013, with 12.5 added every 10 minutes to the system. The total worth of bitcoins is over $16 billion. That puts it in the region of an FTSE 100 company.
TradeZero offers bitcoin trading opportunities for institutions and individuals wishing to trade large volumes, through its Digital Currency exchange. Many other features are on offer too. Give us a call at +1 954-944-3885 or email us at email@example.com.
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