After a single Bitcoin crossed the $5,000 some months ago, Bitcoin has again cost more than $10,000 in some exchange markets. The price of the Bitcoin has increased due to the increasing numbers of new buyers that have shown interest in the currency form all over the world. The new buyers think of Bitcoin as a competitor of gold that will be effective for storing money away from government and company regulations.
Bitcoin was launched in 2009 by Satoshi Nakamoto and was able to survive hardships in its first seven years. Bitcoin trading started taking place in some parts of Japan and South Korea among investors. Investors in Seoul have gone ahead and developed stores where individuals can buy and sell the currency. The prices of Bitcoin reached $10,000 in South Korean exchange markets. It was valued at $9,700 in the American exchanges.
The American stock exchange market transactions of Bitcoin reached $5 billion last Sunday. Experts in the Bitcoin technology believe that the new currency will soon join bonds, physical commodities, and stocks as an asset that people will invest on. At least 100 hedge funds have seen opportunity in the currency and have invested in it. The hedge funds have also invested in other virtual currencies.
The price of Bitcoin is currently seven times the price it sold at in 2013. Bitcoin companies have increased across the world unlike in 2013 when only one company, Mt. Gox owned them. In 2013 Mt. Gox was in charge of more than 75% of all the Bitcoins that were available. Currently, the companies hosting Bitcoins have only 10 of the currency each. The industry is therefore safe from problems caused by monopolies.
The currency has reached many investors in several countries across the world. The currency’s design is the same in all countries. Their storage and trading are carried out on a network of computers that is not centralized. The trade is also not regulated by any company or government. Its prices are expected to rise in the next few months.