Tuesday, 17 October 2017

Bitcoins: Three Factors Behind Them

Posted by Valentine at 11:56 Labels:

Please don’t tell us you have not heard about it… Well, we were all busy if that’s your excuse. Anyway, Bitcoin has reached historic highs by the end of last week at $5920.

While on Monday we’ve seen a downward correction take the world’s most famous and powerful cryptocurrency back to $5671.5, market sentiment remained positive. But why?

At this stage, there are several factors being weighed in by Bitcoin, including the slow (but steady) penetration of Bitcoins into US real estate market operations, the 19th national congress of the Communist Party of China and Russian President Vladimir Putin’s order to create a national cryptocurrency.

Let’s go step by step. First, US real estate market. Reports said Monday that Bitcoin is now being used as a differential point by real estate agents, accepting crypto payments as a way to increase popularity and returns from young clients.

Of course, gaining popularity is seen as a bullish driver by market participants. A larger number of people putting money into Bitcoin and using it for big-scale transactions is a huge step for the cryptocurrency industry as a whole.

Secondly, China. As the Chinese elite gathers for an important meeting that might define the future of the country in the near term, crypto investors take their seats to enjoy the show.

Traders will be careful as China has recently imposed a ban on cryptocurrencies, which was a hit for Bitcoin in the first weeks following the announcement.

However, we should pay attention on two things: 1. There are expectations that the Chinese government will revert the ban and allow Bitcoin exchanges within a tougher regulation system; 2. It seems after all, Bitcoin prices were able to recover back to $5000 without China’s help.

And finally, interesting news coming out from Russia. After meeting with Moscow’s elite, President Putin has called for the creation of a state-issued cryptocurrency – the cryptoruble.

Russian Minister of Communications and Mass Communications Nikolai Nikiforov said the announcement should not be understood as an endorsement to legalize decentralized cryptocurrencies such as Bitcoin or Lithium (like Japan recently did).

Nikiforov explained the government will work ‘quickly’ to develop and take the cryptocurrency to markets, but recognized details on technology and taxes are yet to be discussed.

No comments :

Post a Comment

Subscribe to: Post Comments ( Atom )