Bitcoin is surging ahead with its value jumping by over 60 percent over the last few months, hitting a new high for the year, thanks to renewed interest by investors in the crypto-currency.
Bitcoin is no stranger to sudden bursts in value. The online currency soared from under $200 in September 2013 to an astonishing $1,100 by the start of the following year. However, investor confidence suffered after it turned out to be another unsupportable balloon and it crashed soon after.
This time, interest in the online currency is increasing both in the consumer market and with regulators. Today, the tradable security can be used to buy a computer, book a holiday, or even donate to the American Red Cross. Some of the biggest retailers have started accepting Bitcoin, as well as companies such as Microsoft and Dell now taking it as payment. Even online payment startups as well as legacy players such as Paypal and Square are incorporating Bitcoin into their services.
Some stock market analysts are predicting that Bitcoin, which is currently trading around $380, will rise to $600 thanks to its new popularity. This is helped by the fact that regulators around the world have finally started to embrace Bitcoin instead of thwarting its progress. At this time, several U.S. states are already preparing Bitcoin related legislation.
$1 Billion Threshold Crossed
Another factor in Bitcoin’s favor is the amount of investment capital being poured into related startups. The total dollar volume which is backing startups working in the sector dealing with Bitcoin recently crossed the $1 billion threshold with the investors behind that cash giving it increased visibility.
This shows that despite the many issues still surrounding its validity, Bitcoin is currently hot to many investors and the way things are going, it will stay that way for some time to come.