The price of Bitcoin in early Sunday Asian trading went as high as $2,039.08. The price of the cryptocurrency is projected to continue rising because of increased speculation in the market as well as low supply. The price of the currency was much higher in two of its largest exchange markets -- Japan and South Korea. The C.E.O of CryptoCompare; an online website that tracks Crypto trends, said that traders in Japan and South Korea made most of the purchases early Sunday morning. Japan and South Korea command half of the currency's exchange market share.
It is believed that some traders are moving away from stocks to buy the coins.
Bitcoins' past price movements
The price of Bitcoin was $0.003 in April 2010. The price moved by $200 in October 2013 to $980 by the end of November in the same year. The price reduced to below $225 in mid-2015. In January 2017, the price of one coin was $997. It is still not well known where the price of the currency will go next. The C.E.O of Gatecoin; a cryptocurrency exchange company in Hong Kong once told CNBC that the price of the coin would exceed $3000 before the end of the year.
High Bitcoin prices will make the mining of the coin lucrative, as the currency is either bought or mined in order to acquire it.
Minimig is an activity whereby third party individuals called miners record and verify Bitcoin transactions by the coins' users. Successful miners get rewarded with Bitcoins.
Bitcoin’s Meteoric Price Rise to the Moon Reaches $2000 https://t.co/iIX2mdK5XV pic.twitter.com/OzQwtyTUjx
— Bitcoin News (@BTCTN) May 20, 2017
A brief history of Bitcoin
Bitcoin is a cryptocurrency that can be acquired by buying and selling of goods and services.
It is mostly used online. A Japanese man by the name Satoshi Nakamoto is believed to have been the creator of the currency. The first Bitcoin was created in January 2009, and by the year 2015, 100,000 merchants accepted it as a mode of payment. Most governments around the world have not encouraged their citizens to use the currency, as it remains largely unregulated, and it is believed to be used by online criminals.
Why you should think twice before dealing with the currency
A study in the year 2013 found that 45% of online exchanges that buy and sell the coins fail and go down with client money. Former Federal Reserve Chairman Alan Greenspan, as well as economist John Quiggin, called the currency a speculative bubble. Warren Buffett has warned investors who are dealing or are planning to deal with the currency. Several people that have worked with the currency have warned that bubbles may occur, while some journalists and the central bank of Estonia have called it a Ponzi scheme.
