The most popular cryptocurrency in the world, bitcoin, is now gaining more and more steam and acceptance from all over the world. It should really be no surprise to see this revolutionary cryptocurrency shoot through the roof Stock Market News.
The value of bitcoin has grown astronomically. It is now considered to be more valuable than several currencies in the world. In this article, we will consider the main reasons behind the surprising surge n the value of bitcoin.
Recognition by Governments
The larger number of governments across the world has been halfhearted about the rise and populariy of cryptocurrencies in general and bitcoin in particular. This is because digital currencies take away the power from these governing bodies.
Right now, the government has control of fiat currencies, which means that they scan create money based on their policies and regulations. But with the case of cryptocurrencies like bitcoin, the government will also be compelled to earn it. This puts it at a big disadvantage.
On the other hand, the popularity of bitcoin has risen so much that even the governments cannot ignore it. For one, the Japanese government found it inevitable to recognized the said digital currency. The recognition form the world’s third largest economy has been very advantageous for the value of this currency.
The larger slice of this increase in value can be connected to the increasing demand for the cryptocurrency in Asia as a direct consequence of the Japanese government’s recognition Trends and Volume Spread Analysis.
The Spike in Ransomware
The whole world has been faced with a randomware epidemic recently, with several huge corporations being hacked into and payments being demanded by the attackers in exchange for the release of data. The interesting thing is that most of such payments have been demanded to be denominated in bitcoin and other cryptocurrencies.
The reason is simple. It is quite impossible for the government to keep track of the digital currencies. On the other hand, cryptocurrencies are immune to such investigation.
Additionally, cryptocurrencies can be easily converted into cash from any exchange around the world. Thus, hackers can spread money across several regions and obscure the probe being performed by the government.
The surge in the popularity of bitcoin to hackers has been negative PR for the cryptocurrency community. On the other hand, it has also raised demands by heaps and bounds. More and more corporations found it necessary to buy bitcoins and they have further pushed the cryptocurrency’s value in the process.
Several people in various countries all over the world have begun using bitcoin as a method of transferring money. Conventional money transfer agencies are quite expensive, while bitcoin is very much cheaper.
The sender of the money only has to convert it into bitcoin and then the resulting cryptocurrency will be sent to the receiver. The receiver will then just convert the bitcoin he or she has received using the prevailing rate for bitcoin.
In performing this activity, various laws can be sidestepped. These include high fees by traditional money transfer agencies.