On Friday, the price of a single bitcoin reached its highest level at $777 since February 2014, when news of hackers stealing customer bitcoins worth millions of dollars from one of the biggest bitcoin exchanges at the time, Mt. Gox sent prices plummeting. According to Charles Hayter, the founder and chief executive officer of Cryptocompare, a company that provides digital-currency market data and analytics, the recent price surge could have been as a result of a number of factors. Hayter explains that the surprise victory of president-elect Donald Trump in the hotly contested U.S. presidential election and the government of China continuing devaluation of Yuan as well as the uncertainty brought about by the upcoming Italy’s referendum on Italians likely voting “no” could have played a key role in making the bitcoin price surge.
Hayter also said that optimism brought about by the coming software upgrade, which will allow bitcoin miners to signal support through a SegWit code to activate a long-anticipated scaling solution could also have played a role in raising the price. The software upgrade has created excitement by being the first to feature a code that can be activated later in a bid to scale transaction capacity. Once rolled out, the software is projected to increase the volume of transactions without changing the block size. The upgrade will also come with fee filtering that will make it easy for peers to relay transactions when disseminating across the network.
Hayter also highlights increased bitcoins trading volumes in India following a directive by the Indian Prime Minister, Narendra Modi’s decision to remove 500 rupee notes and 1000 rupee notes from circulation as another factor that has contributed to the remarkable bitcoin price increase. According to Hayter, despite the factors individually increasing the volumes of bitcoin transactions, a combination of these factors is the actual reason why bitcoin prices reached a new price height on Friday.
Hacking of Mt. Gox, which forced one of the leading exchanges into bankruptcy, hit the bitcoin market hard as the security issues in the digital currency market came into the full glare of buyers and sellers. The hack ended one of the strongest bitcoin levels that had seen the value of a single coin reach an all-time high of about $1200 just a few months before. However, with the coming software upgrades, bitcoin traders are hoping that the sad times brought by the collapse of Mt. Gox is a thing of the past. Their hope is further supported by the fact that bitcoin prices are currently on an all year steady rise. Top
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