Bitcoins Hit 3-Year High

Posted: Jan 2 2017, 10:27am CST | by , in Also on the Geek Mind


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Bitcoins Hit 3-Year High
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The price of bitcoin has reached a three-year high today, hitting the $1,000 mark. The cryptocurrency was trading at around $1021 at publication, according to CoinDesk data. This is a level it hasn't seen since November 2013, when it exceed $16 million in market capitalization.

Bitcoin has been marching higher for the last few months due to the devaluation of the yuan, political uncertainty, and an increase in people taking an interest in the asset class.

"We are seeing the aftermath of zero interest rates run amok. So bitcoin is a healthy reminder that we don't have to hold on to dollars or renminbi, which is subject to capital controls and loss of purchasing power. Rather it's a new asset class," Bobby Lee, chief executive of BTC China, one of the world's largest bitcoin exchanges, told CNBC.

China is the center of bitcoin trade.

Other factors that have made and impact include the price appreciating 137% in the last year and Donald Trump's win, which has made people not as secure in the economy. The biggest reason is that there was a change in bitcoin's underlying rules for those who "mine" the currency. The supply of bitcoins was reduced due to a lessening of the rewards for people who mine.

Overall, the market will only continue to grow.

"The value of Uber in any city is directly dependent on the number of drivers and number of users, it's not linear it's exponential. The same is true of the value of bitcoin," Lee said.

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<a href="/latest_stories/all/all/46" rel="author">Noel Diem</a>
Noel passion is to write about geek culture.




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