Why bitcoin is so expensive?

A few years ago, the topic of virtual currencies sounded like a science-fiction tale. A number of conventional analysts saw in the new block technology a short-lived balloon that has no clear future and accurate application. To date, however, those who believed in bitcoin and put money and effort into the newly created market can boast of a serious state. Bitcoin is now more expensive than the eternal asset - gold. Of course, the noble metal does not have the negative quality of lowering its price in minutes, but to date it seems that its most serious competitor in terms of price and yield is crypto-lute.

This is because the virtual currency, characterized by its volatility, can bring both large losses and incredible returns. The latter found his testimony this week after Bitcoin hit his highest value on Friday as he hit the white world. During morning trading on Friday, the most popular crypto hit reached $ 1,343.59, according to CoinDesk. Thus, from the beginning of the year, cryptoLight is adding up to 38% of its price after starting in 2017 from a price of $ 968. For comparison, the cost of investment gold jumped 10 percent from the beginning of the year to $ 1,266 an ounce, according to goldprice.org. So real,

But why does bitcoin appreciate right now? The reasons are several.

More and more countries are officially recognizing cryptoLights as a legal tender. To be honest, the countries where the crypt is illegal are counting on the fingers. For example, Ecuador, Bolivia, Kyrgyzstan, Bangladesh and a few other colossus in the world economy. It has recently become clear that Russia will also give legal status to virtual currencies in 2018, following the example of Japan, which has already done so. So real, bitcoin and other similar means of payment are building an ever larger ecosystem in which they can operate legally and serve as exchange units. The more transactions a crypto-point gets, the higher its cost becomes.

Blokchene technology is called by some experts a natural pyramid. The main thing is that it builds on the confidence and willingness of investors to stay behind it. This happens even after a number of collisions on global bitcoin trading platforms, which gives the absolute support that crypto-payers receive both as a means of payment and as a payment infrastructure.

Despite the undoubted success of bitcoin in recent times, the main reason for reaching unprecedented values ​​is quite rational - the next step for crypto-lute is now officially done. Earlier this year, the Wincwows twins (those who sued Zuckerberg to steal the idea of ​​Facebook from them) stood behind the first-ever ETF, whose yield is measured on the basis of the bitcoin price. Initially, the US Securities and Exchange Commission did not give approval to Wincourse's ETF, but the situation changed the theory this week. The US regulator has returned his decision to review and by May 15 this year will hold opinions "for" and "against" the official entry of bitcoin on conventional capital markets. This was perceived as a second chance for the ETCO based on bitcoin, which provoked a massive takeover of the cryptoLight, raising its price to a record high. If the innovative ETF gets a green light from the stock regulator, we can actually see an even greater leap in the bitcoin price. So far, however, these are just speculations, as it will be really difficult for crypto-banks to take part in regulated stock markets, whether through an exchange-traded fund. The reason lies precisely in the word "regulated" markets. The fact that states around the world legalize the viral currencies does not mean that they are already regulated. Block technology is not really subject to regulation, but only to careful observation. However, innovative technology is an alternative to our well-known payment systems, not a copy of them. So there is hardly a stock regulator in the world to approve a financial instrument that is not subject to control. This means that the new highest bitcoin price is likely to be a short-term phenomenon, which does not prevent many investors from capitalizing on the crackling mania lately.

Nevertheless, the fact that we are already talking about the ETF based on crypto-loudspeakers shows how serious the technology behind them has been going through in just a few years. No wonder, one day, virtual currencies can actually be traded on regulated markets, but so far they remain an inspiring (and profitable) alternative to familiar rules. Rules that, in the current economic and political turmoil in the world, will increasingly change their faces. A world in which the thirst for control and over-consumption is on top, is unlikely to turn into an instrument that is unattainable to control, which is the crypto-lute.