In a year of monster hackers, the rise of new cryptocurrencies, and its own unresolved “civil war” over how to enlarge its transaction capacity, bitcoin has not only survived, but thrived.
The price of bitcoin has risen by 19% this month to a high of $718, putting it within touching distance of its 2016 peak.
As with most bitcoin price movements, the reason for the current rally is a bit of a mystery. (The 2016 peak was easier to explain the most, as it coincided with the UK’s vote for Brexit.) As for the latest price climb, here are some of the leading theories circulating among crypto traders:
Bitcoin is a hedge against yuan depreciation
The Chinese yuan has fallen 4% against the dollar so far this year, bringing it to a six-year low. Some Chinese traders are using bitcoin, along with gold, as a hedge against further yuan weakness, Bloomberg reports. Currency hedging in China is complicated by the country’s capital controls, making freely traded bitcoin more attractive. Also, a government ministry recently released its first ever study of blockchain technology, the technology which underpins bitcoin, and it was overwhelmingly positive.
People are turning to bitcoin
Read more ... source: TheBitcoinNews
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