Factors That Contributed To the Upsurge in Bitcoin Value

the Upsurge in Bitcoin Value

Bitcoin price is still skyrocketing despite negative sentiments about it. In fact, last year Bitcoin price rose by more than 210 percent. Since its invention in 2009, Bitcoin has weathered many variables, including rejection, skepticism, and volatility. And today, Bitcoin value has crossed the $10, 000 mark. Most governments and financial institutions are now embracing Bitcoin as a method of payment. This post talks about why the value of Bitcoin is growing at such a fast pace:

The invention of Bitcoin was timely

Bitcoin was invented in 2009. That’s just after the global financial crisis, which occurred in 2008. Bitcoin was intended to be operated outside of central banks, governments and other financial institutions. Up until now, many governments and financial institutions have tried to regulate it without success. Realizing how hard it was to control its framework, some countries banned Bitcoin completely, while others kept a sharp eye on it. Some countries even decided to tax it heavily to bring it under control.  However, the need for faster transactions across the world and the reduction in transaction costs allowed Bitcoin to become popular. And today, countries are increasingly coming out to support it. Some countries that have come out to support Bitcoin include Japan, China, Canada and the Philippines. In fact, Bitcoin in Canada is gathering pace due to the recent approval of the Bitcoin investment fund.

Mismanagement of money has caused Bitcoin value to rise

Another reason for the value or price of Bitcoin to go up is the financial mismanagement by China, India, and Venezuela, including other countries. But, China played a major role. The leadership of China is indulged in the intentional devaluation of the Yuan, causing a lot of capital flight. Many Chinese investors shipped their money offshore. But the Chinese authorities established capital controls afterward, and that’s how Bitcoin took advantage. Many Chinese investors used Bitcoin to ship money out of the country. This led to significant Bitcoin price upsurge. India, on the other hand, banned high-value notes, which resulted in financial chaos in the country. Also, the plummeting prices of oil resulted in inflation in countries like Russia, Venezuela, and Nigeria. These factors led to the increase in the demand of Bitcoin.

Although the above are the major reasons for the skyrocketing of Bitcoin price, certain economic and geopolitical reasons also contributed to the upsurge of Bitcoin value, such as the spike in debt levels in some of the world’s largest economies, trump’s presidency, and Federal Reserve hikes.


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