Daily Management Review

With Market Cap Up $4 Billion This Week Alone, Bitcoin Hits $1,900 To Reach Record High


05/20/2017




With Market Cap Up $4 Billion This Week Alone, Bitcoin Hits $1,900 To Reach Record High
Driven by global political uncertainty and key developments within the cryptocurrency world, Bitcoin broke through the $1,900 mark for the first time on Friday.
 
According to Coindesk's bitcoin price index, the digital currency had moved as high as $1934.24 and was trading at around $1943.99 on Friday morning. A more than 6.8 percent rise from a week ago is marked by the current level.
 
Up more than $4 billion from Monday, bitcoin's market capitalization is now $31.75 billion.
 
From increased trading in Japan to debates over the future the bitcoin's underlying technology, a number of factors are responsible for bitcoin's rise.
 
According to data website CryptoCompare, accounting for around 48.6 percent of trading are Japanese yen and Korean won whose trading volumes have risen. The recently passed legislation that allowed retailers in Japan to begin accepting bitcoin as a legal currency is to be accorded to this rise.
 
Japan has been a big driver of bitcoin trade since then.
 
With the yen-bitcoin cross trading at 228,783.29 yen or $2058, Japanese yen bitcoin markets are also trading higher than U.S. dollar markets. This is higher than Coindesk's bitcoin price index. This is helping push prices higher given that the Japanese yen has the highest share of bitcoin trading at the moment.
 
"Arbitrage between the fiat pairs drags markets up or down in line with leading markets. At present, volumes on the KRW and JPY pairs dominate trading with a combined 48 percent market share," Charles Hayter, CEO of CryptoCompare, said.
 
For investors worried about the political instability and the performance of other asset classes, bitcoin has acted as a safe haven in the past.
 
While the political establishments in America and Brazil are facing potential scandals, U.S. equities saw a sell-off this week before rebounding earlier this week.
 
Potential inability of U.S. President Donald Trump to deliver on his promise on tax reform, deregulation, and infrastructure spending is a cause of concern for investors. There was a report that Trump allegedly asked ousted FBI Director James Comey to “let go” of the investigation into former national security advisor Michael Flynn on Tuesday.
 
Elsewhere, Brazilian President Michel Temer allegedly authorized bribes to silence a witness in a corruption scandal.
 
Analysts say that bitcoin is being supported by political turmoil in the world.
 
Debate about the underlying technology behind bitcoin known as the blockchain is going on behind the scenes in the cryptocurrency world. An unusually long time to process and come with high transaction fees is being taken by bitcoin at the moment.
 
Initiation of what is known as a "hard fork" is sought to be made by many in the community. The creation of two separate digital currencies would be the result.
 
But a "hard fork" might not be needed and this has buoyed investors was shown by an experiment with another cryptocurrency called Litecoin. There is a chance to speed up transactions and the backlog that has ensued, the idea shown with Litecoin showed the bitcoin community.
 
"The new developments on Litecoin, which is experimenting with alternative scaling solutions may offer a brighter future for bitcoin, and a longer-term price increase, if those similar solutions can be applied to its network," Aurélien Menant, founder and CEO of Gatecoin, a regulated bitcoin and ethereum token exchange based in Hong Kong, said.
 
(Source:www.cnbc.com) 






Science & Technology

With China Set To Dominate, 1 Billion Could Be Using 5G By 2023

Deutsche Telekom unveils next gen 5G mobile antennas in Europe

Diamonds are now the new gold

Expert Body Says Driving In A Driverless Car In An Inebriated Condition Or On Drugs Should Be Legalized

SEC’s EDGAR database vulnerable to cyber threats

Research Says The Risk Of Severe Turbulence On Planes Will Increase Due To Climate Change

Barclays and CLS Group aim to replace SWIFT with blockchain

Designing Of Cars Being Done With Hologram Goggles At Ford

The Already Surging Cyber Attacks Are Set To Rise Even Further, Says A Study

Chinese to equip smartphones with OLED displays

World Politics

World & Politics

Scholar Says Political Appointees Not As Important As Financial Ones In China For The Economy

An Expected Change In Brussels Could Be Crucial For The Euro Zone

Destroying People Who Wouldn't Help One Of His Bankrupt Businesses Was All Trump Talked About When He Met Him In 1990s: Branson

Russia Is Worried About America’s Unpredictability

No oil contracts with Iraqi Kurdistan: Iraq’s oil ministry

Donald Trump lost $ 600 million during his presidency

Britain puts its weight behind Europe in the battle between Boeing and Bombardier

EU hopes to keep the Iran nuclear deal afloat