Bitcoin Is Up 30% This Week And 200% This Year: Here Is What You Need To Know

The attention given to bitcoin by the broader investment community might have peaked years ago, but its price is surging yet again, implying renewed focus and attention toward the digital currency.

The price of one bitcoin was trading at $740.84 early Friday morning. In fact, the value of bitcoin has gained around 30 percent this week and 200 percent this year.

Bitcoin bottomed at around $230 a year ago and has been slowly gaining in value before gaining momentum in late May when it was trading at around $450.

What Happened?

According to Tech Crunch, bitcoin was designed to eventually have a total float of 21 million coins and none can be added or taken away from the market. As time goes on, fewer Bitcoins will be mined and enter into circulation.

Related Link: China & The Code: Keys To Bitcoin Hitting A 2-Year High

Bitcoin's core dictates that every 210,000 blocks mined will result in the mining reward being slashed in half. In about three weeks, the reward will fall to 12.5 BTC per block, down from 50 BTC per block in 2012. This cuts in to the miners profits but represents the natural and designated evolution of the bitcoin economy.

Tech Crunch also suggested major updates to the core technology that powers Bitcoin is driving up demand for the digital currency.

Finally, the rise in Bitcoin could also be attributed to the same themes causing uncertainty in the equity market such as an uncertain economic outlook in Asia, the upcoming Brexit vote and the U.S. election.

"One last parting piece of advice — as exciting and tempting as it is to watch any form of real money appreciate so quickly, remember to remain rational," Tech Crunch warned. "Almost anyone who has ever been involved in Bitcoin is probably kicking themselves right now for not stocking up a year ago or even a week ago. Others may feel a temptation to stock up right now because they think the price is only going up. This is probably an awful idea. As we've learned, Bitcoin is its own beast, and will do what it wants. If you try to time any public market you most likely are going to lose a lot of money."

Posted In: ForexMarketsMediaBitcoinBitcoin PricesCryptocurrencyTech Crunch
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...