Bitcoin price explodes

The virtual currency Bitcoin is striking with its veritable comeback: On Wednesday, the price increased by a whopping 25 percent, reaching for the first time since the summer of last year, the mark of US $ 500. This Bitcoin presented itself impressively in recent weeks. The end of August the price had stood just below $ 200.

For this development mainly two reasons are given. On the one hand pushes the standing behind the virtual currency blockchain technology in the financial services industry more and more interest, as it allows to transfer ownership locally. Wall Street banks such as Goldman Sachs and Morgan Stanley, therefore, for example, thinking about blockchain to use when trading securities, derivatives and loans. “We believe that Bitcoin and the blockchain technology have the potential to shake up the existing financial infrastructure in the coming years,” citing the Bloomberg news agency in an assessment of the investment firm Wedbush Securities.

Another reason applies the demand from China. It is estimated that up to 90 percent of the trade instead of Bitcoin in the People’s Republic. The surprising devaluation of the Yuan in August and a price slump in China’s stock markets have led to a sharp outflow of capital. In so far this year to nearly $ 700 billion have left the country, they say.

And what does that have to do with Bitcoin? In October, the European Court had strengthened the digital currency Bitcoin. Therefore no tax is payable on the conversion of Bitcoins in euros or other currencies regular. Therefore, it makes sense, not directly convert Yuan into a European currency, but having to go through Bitcoin.

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