Bitcoin has surged 600%
Bitcoin has risen more than 600% (YTD), and is now trading near its record highs. Its current market cap stands at $123 billion. This is comparable to the GDP of many emerging market & frontier market countries. With it’s recent surge the market cap of Bitcoin has surged above the GDP of countries like Angola, Dominican Republic, and Sri Lanka which have a GDP of $89.6 billion, $71.6 billion and $81.3 billion respectively. At it’s currently level it is now nearly on par with the GDP of Hungary.
The sudden surge in Bitcoin prices indicate an optimistic environment going forward. Below are some factors that have played a role in Bitcoin’s rise and are worth watching going forward.
- Changes in the economic framework: Over the years, Bitcoin’s framework has been a cause of concern for regulators. However, a number of countries have now been supporting cryptocurrency. Recently Japan has recognized Bitcoin as a method of payment, Russia who had opposed Bitcoin earlier are now considering legalizing Bitcoin.
- Changes in geopolitical and economic factors: Bitcoin prices could be affected by the exhausted monetary policy of many central banks globally.
- Bitcoins are becoming robust: The recent developments that have been made in the mining of bitcoins along with technological advancements have overall improved the performance of Bitcoins.
- Digitisation: Nations across the world are shifting to digital payment systems and prefer cashless payments.
Since 2011, there have been approximately 980,000 bitcoins worth $4 billion stolen. With the recent surge in Bitcoin prices, hackers still pose a risk for investors as many exchanges attempt to continuously introduce the latest security technologies.