The price of Bitcoin has zoomed 100% in one year. One bitcoin was worth Rs 14,315 last year on April 26, 2015. The price of bitcoin on the same day in 2016 stands at Rs 30,025.At the time when people are talking about bitcoin being dead about 100 times, here it has proved that it is still alive and kicking. Amidst block-size debate, the price of bitcoin has zoomed ahead by 100% in the past one year.
At the time of writing this article, the price of bitcoin was trading at Rs 30,999 on Zebpay Bitcoin Exchange. One reason could be the release of Segregated Witness (SegWit). It is a code for a protocol update that would tackle bitcoin transactions limit. Thus making it more efficient to hold a greater number of transactions.
The halving of bitcoin mining reward, due in July 2016, could be another reason for bitcoin gaining increased attention in past few days. Global economic factors are also responsible for turning investors towards bitcoin as a safe haven. Bitcoin is now considered as an investment option too because it is insusceptible to hyperinflation.
The year has begun with a gloomy global economy landscape. Crashing equities in China, banks seeing more NPAs, turmoil in the euro-zone and shrinking world trade are the reasons behind a disastrous start of the year. Bitcoin prediction report for 2016 by Zebpay highlights factors that are fueling faith in bitcoin.
Not just price! The surging number of bitcoin transactions and trading volume points growing popularity of bitcoin. An increased number of wallets hints people are now using bitcoin like fiat currency wallets. Large firms, governments, and regulators are now praising bitcoin and its underpinning blockchain technology.
Bitcoin has always been a volatile digital currency since its inception in 2008. But in recent few weeks, it has shown signs of stability in its value. The BTC/USD exchange volatility (trailing 30-day average) dropped by 61% since April 26, 2015 .
Once stable above Rs 30,000, it will boost market sentiment and larger advances from hereon. The market is now waiting for the halving in July 2016 which can take bitcoin price to fresh new highs! Disclaimer: Users are requested to use their own judgement before investing in bitcoins as its highly volatile.
