Bitcoin smashed record after record in 2017, hitting a new $7,454.04 high on Friday. But why is the digital currency having such a great time?
Jordan Hiscott, chief trader at social trading platform ayondo markets, thinks that Bitcoin owe its success to shifting paradigms in the world of finance. “We are in an age where technology is changing the dynamic of the business world.
Older, traditional organisations are seeing their long-held dominance challenged by ‘disrupter’ companies,” said Hiscott, according to the Daily Express.
The current price doesn’t come as a surprise for investors
He added that Bitcoin’s speed on the market represents no surprise for him. If the digital currency continues this dreamy road, traders could expect to see even more record prices in coming weeks.
The lack of external regulation and control from big banks has surely help Bitcoin gain this kind of popularity. Hiscott explained that decentralised exchanges, meaning that all transfers and transactions are peer to peer, are what attracted people, because there are no banks or governments involved in these transactions.
He says that the fact that Bitcoin is secure, using dual-sided cryptography for each transaction, and that there is also only a finite amount ever in existence, also helps the cause. The price of Bitcoin has risen by more than 500 percent this year alone.
Will the price stop growing anytime soon?
However, Iqbal Gandham, UK Managing Director at eToro, considers that Bitcoin’s rise will eventually correct itself. He said that this situation isn’t a market bubble and that things will find a way to sort out eventually, despite the fact that Bitcoin has risen steadily over the last two, three years.
Still, some experts think that they are looking at a bubble ready to burst, with Kenneth Rogoff, professor of economics at Harvard University, saying that Wall Street could move to create its own digital currencies in a bid to tip the balance in its favour.