Bitcoin is experiencing the next boom

In the last few months, the creeping decline of Bitcoin was everywhere. The hype is over, Fintech is evolving in another direction. Blockchain yes. But certainly not Bitcoin. A slightly different picture shows the value development of the digital currency lately. Since the beginning of the year the price has increased by 80 percent. The total market capitalization has never been greater: all bitcoins together now have a value of more than 12 billion dollars.

The number of transactions also continued to grow steadily. Up to now about 300,000 per day. The technology does not allow more at the moment. And as with all services where the demand is greater than the offer, the price also rises here: transferring a bitcoin transaction was virtually free for many years. Now, a timely transmission costs around 30 cents.

Demand has recently increased wherever there were problems with the classic currencies of the national banks. In India, Venezuela, Russia, China. The local transactions, where physical money is exchanged for Bitcoin, are growing rapidly. This is shown by the analysis of the trading platform localbitcoins.com. But also the online stock exchanges are booming as never before. In India alone, 50,000 users have registered again in the zebpay platform in November. The volumes of Chinese exchanges reach all-time highs.

At the moment it is clear: bitcoin is not used primarily as a means of payment. In Western countries, there is no need for this, and in developing countries the rising transaction fees for small daily transfers are starting to get worse. Bitcoins are in demand because the people of Bitcoins are convinced as a value-preserving tool. In many parts of the world, the currency is bought for hedging, for the diversification of assets. As security against inflation or depreciation of one’s own national currency. Quasi as currencies, especially in the important market China.

In western countries, on the other hand, speculation dominates. The investors simply point to a continuation of the boom. They insist that Bitcoin’s global character and cousin resistance evolve such a power that Bitcoin actually becomes a valued alternative currency and thus gains in value. As always in money questions, trust plays a central role. The Bitcoin protocol has been virtually free of piracy for seven years. But risks remain. Already every update of the software – as conscientiously tested it may be – carries the risk of a temporary breakdown. In addition, the more important Bitcoin is, the more the currency moves into the focus of those who are skeptical about the currency or want to harm it.

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