The year of 2017 has been amazing for bitcoin, which has become one of the primary payment methods for some of the best Bitcoin dice, poker, and casino sites. It has led to an incredible increase in value, despite a huge number of negative news, which somehow didn’t play a big influence on the market. In fact, recent reports now indicate that the digital currency has just managed to once again surpass the $5,000 threshold, and hence reach a new all-time high after it traded at $5,144 on Thursday morning.
Understanding the negative news impacting the market
The last couple of weeks have been filled with negative events in the bitcoin ecosystem. To kick things off, China decided to ban all initial coin offerings (ICOs) which represented a great way for startups to raise money for their projects, by selling valued tokens. Not long after, China decided to further crack down on digital currencies by shutting down all domestic bitcoin exchanges. The first event caused the price to break and reach new lows for the current standards, of roughly $3,000 per unit. A few days ago, speaking at a conference in Sochi, Russia, President Vladimir Putin stated: “Virtual or cryptocurrencies are becoming and have already become more popular. They have already become or are turning into a full-fledged payment instrument and an investment asset in certain countries. At the same time, use of cryptocurrencies also carries serious risks.” However, it is important to point out the fact that Russia is not planning to ban bitcoin completely, but rather to create stricter rules and regulations for the market in Russia. The Central Bank believes that this will further reduce risks of money laundering, and terrorism financing.
Why it doesn’t matter
It seems like investors throughout the world have managed to shrug off the negative news, hence causing yet another price rally for the digital currency. The reasons behind this are still unclear, even for market analysts, yet it is believed that the trust in bitcoin is so high that a country’s government statements cannot really do much to affect it anymore.
Not only this, but there was also some positive news on Thursday morning, as a few bitcoin investors and analysts stated that the price is likely to increase even more in the months to come. Some believe that it will surpass $20,000 in a few months, whereas others believe that the price will settle at around $6,000 by the end of the year. Whichever the outcome is, it remains positive.
Unfortunately, whenever there is a big increase in the price, discussions of a possible bubble affecting the coin resume. The most popular arguments state that the value of bitcoin is not based on anything concrete, unlike traditional currencies or commodities that people trade with. Rather, these arguments are often dismantled by those who state that bitcoin itself is a revolution in the world of finance – it is different in almost all the ways to traditional currencies, therefore it doesn’t abide by the same rules.
Based on everything that has been outlined so far, what are your thoughts on the recent price increases? Is Bitcoin a bubble in your opinion, or is it just speculation? Let us know your thoughts.