Everyone knows the “ABCs” of how to make money in modern business: “Always BitCoin.”
Okay, maybe those aren’t the real ABCs, but as Bitcoin soars well above $5,000 USD in value, it’s hard not to think that anyone who’s invested in the cryptocurrency is feeling pretty happy. The price of Bitcoin currently sits at $5,200, growing eight per cent today alone from this morning’s opening price of $4,830.
Bitcoin is, like all cryptocurrencies, incredibly volatile and hard to judge. Still, it has been climbing like mad. Exactly one year ago, one Bitcoin sat at $635, and it is entirely feasible that it will rise above $6,000 by the end of 2017.
Surging past a $5,000 price tag can be attributed to a few different factors. Firstly, Bitcoin has recently had many new Korean buyers, pushing the hype and access to the cryptocurrency up more and more. Second, a hard fork is approaching, set to happen at the end of October. This Bitcoin Gold fork could end up creating a new currency, similar to what happened in early August. When that fork took place, Bitcoin Cash was created, seeing its value rise to $900 before coming back to earth at $300.
“Investors are seeing the lessons of history in the up-and-coming forks and hoping for an extra dividend,” said Charles Hayter, co-founder of Cryptocompare to U.S. News.
Bitcoin has seen a lot of media coverage lately as both China and Russia have begun to crack down on using cryptocurrencies. It started with a ban on ICOs and eventually led to widespread bans of trading with cryptocurrency at all. Rumours of China reopening exchanges is also slowly driving the price up.
This is in stark contrast to North America, specifically Canada, where companies like Goldmoney are taking advantage of the Bitcoin boom by offering trust and investment options to interested parties.
The price will most certainly drop below $5,000 in the coming months, but the real question is how high will Bitcoin climb. Analysts have speculated it could grow as high as $100,000, while others say the time to exit is now. Either way, it’s exciting to watch as a spectator, and adrenaline-spiking to watch as an investor.