enarzh-TWfrdehiitjaes

David's Cookies

Tech Deals

$7.44End Date: Thursday May-3-2018 12:55:46 PDTBuy It ...
$11.99End Date: Thursday Apr-12-2018 18:18:45 PDTBuy I...
$20.96End Date: Tuesday Apr-3-2018 20:27:37 PDTBuy It ...

Tech Word

We all have heard of software which are applications th...
Most remote workers or telecommuters will be familiar w...
We have several days per year where we as humans celebr...

Member of The Internet Defense League

NordVPNSideBar

Recent Tech

By Jack M. GermainApr 19, 2018 11:19...
Lyft announced today that it will pu...
The cloud is much more than on-deman...
Opening the iTunes Store.If iTunes d...
Moto G6 lineup official with flagshi...
The punchline: Microsoft just unveil...
2 minutes reading time (400 words)

Bitcoin surges above $5,000

image reader comments 34

Bitcoin surged on Thursday morning, blowing past $5,000 for the first time and setting a new record price above $5,200.

The rise is remarkable because there has been quite a bit of unfavorable news about Bitcoin in recent weeks. China, one of the biggest markets for Bitcoin, is shutting down trading. The Bitcoin community faces ongoing acrimony over how to scale the Bitcoin network. A contentious fork split the Bitcoin network in two in August, and there might be another schism in the Bitcoin community come November.

Finally, many experts believe that the broader blockchain world is in the middle of an unsustainable bubble. If that bubble pops, Bitcoin's price is likely to fall with it.

So what explains Bitcoin's rise? One factor may simply be that the blockchain bubble hasn't run its course. People are continuing to hold "initial coin offerings" of newly invented cryptocurrencies. Despite a falling Bitcoin price last month, ICOs raised more than $600 million in September, according to data from CoinSchedule.

image

A healthy ICO market creates demand for Bitcoin because Bitcoin is often used as an intermediary currency for token sales. Legal and logistical barriers make it difficult to sell a newly created cryptocurrency for conventional currencies like dollars or euros. But it's relatively easy to sell a new cryptocurrency in exchange for Bitcoin. So people wanting to participate in ICOs often need to buy Bitcoins first, pushing up Bitcoin's price.

Another possible reason for Bitcoin's rise: the market might actually see forks as a good thing. The August fork split the Bitcoin network in half, creating a new cryptocurrency called Bitcoin Cash that was a perfect copy of the original Bitcoin network—including its transaction history. Anyone who owned one Bitcoin before the fork owned one Bitcoin after the fork and one unit of Bitcoin Cash. And surprisingly, the combined value of these two currencies was higher than Bitcoin had been worth prior to the fork.

So the market may be shrugging off the possibility of another fork in November because it doesn't expect another fork to hurt Bitcoin's value. In fact, it might make holders of existing Bitcoins richer.

A final factor driving Bitcoin's growth: increasing interest from mainstream financial institutions. For example, rumors circulated last week that Goldman Sachs was preparing to open a "Bitcoin desk" for trading cryptocurrency. Speculators may be bidding up Bitcoin's price in anticipation of greater demand from Wall Street in the coming months.

How Casio is selling $900 selfie cameras in China
Icecream Slideshow Maker 2.67
 

Comments

No comments made yet. Be the first to submit a comment
Guest
Friday, 20 April 2018

Captcha Image