How Bitcoin Price Index (BPI) is Achieving New All-Time Highs
Bitcoin Price Index is the value of a bitcoin relative to a United States Dollar, and it is expressed in US Dollars.
The Bitcoin Price Index, or BPI, takes into account the price of one bitcoin in different global currencies using a variety of sources. It provides an instant response to changes in the prices between exchanges worldwide. The index was launched on June 26th, 2011, by CoinDesk, which Digital Currency Group acquired in September 2015.
Currently, with many countries adopting some form of cryptocurrency regulation, Bitcoin is becoming more mainstream as its price continues to increase at an unprecedented rate. This has led many critics to believe that this growth pattern will lead to a price bubble and inevitably crash as soon as BTC reaches its peak. But the future is still unknown.
Following are the five points that prove how Bitcoin Price Index is achieving all-time highs:
Increased Acceptance By Merchants & Retailers
While a cryptocurrency is much like a stock, it is more apt to be thought of as looking more like “currency”. Much like the US Dollar or the Euro.
Bitcoin has been steadily rising in price for some time now, and there are many reasons for this. It provides an outstanding level of anonymity as well as security to users. This creates a lot of trust between buyers and sellers and lets them do business without worrying about fraud or identity theft.
With so much advancement happening with Bitcoin, more and more companies are starting to accept it. Significantly, some major retailers have started accepting bitcoin as a payment option, spurring an increased acceptance by merchants and retailers who view it as an honored form of payment.
There are many reasons that this might be happening. One explanation is that the lack of economic uncertainty could mean people feel safer purchasing Bitcoin than they do investing in other currencies with inconsistent rates of return.
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Investment from Institutional Investors & Hedge Funds
Bitcoin is a digital equivalent to cash.
Institutional investors and hedge funds have been pouring money into Bitcoin and the crypto market, making the Bitcoin price index achieve all-time highs.
The positive trend of institutional investors has led to more people investing in bitcoin. This has led to a significant surge in value, as well as increased its global acceptance.
The positive trend of institutional investors can be seen with an increase in volume and buy orders in 2018.
Bitcoin hasn’t faced any significant regulations or legislation since its inception, which is what attracts many individuals who are looking for an alternative financial solution outside of the current governmental monetary system.
These factors have made Bitcoin one of the most durable investment opportunities now.
Increased Demand from Asia
Bitcoin prices have been on a tear lately, reaching new all-time highs week after week. The price of a single bitcoin has more than doubled since the start of the year, and the overall value of the digital currency has increased in that time.
The recent surge in bitcoin prices can be primarily attributed to increased demand from Asia. Japan and South Korea have both become significant markets for bitcoin in recent months, as investors there have become increasingly aware of the potential benefits of digital currencies.
A new study by the Cambridge Centre for Alternative Finance has determined that the demand for bitcoin in Asia is increasing and has once again led to an all-time high on the Bitcoin Price Index.
In developing countries, Bitcoin provides an alternative to fiat currency that can be more stable than a lot of other currencies. The study also suggests ways to measure this increased demand, such as measuring trading volumes on cryptocurrency exchanges like Bitcoin Era New and measuring price swings in Bitcoin.
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Increased Media Coverage
Bitcoin has seen increased media coverage in recent years, with organizations like CNN showing positive sentiment towards the cryptocurrency. To prove this, in late December 2017, more people were searching “Bitcoin” than “Trump.” With this increased media coverage, Bitcoin has achieved all-time highs, which may be attributed to affluent investors who were previously reluctant to invest but are being drawn in by the media coverage.
Bitcoin has been making headlines in mainstream finance media channels such as CNBC, Bloomberg, and The Wall Street Journal.
People are talking about it at the lunch table, and it’s an acceptable form of payment at some businesses.
But what will bitcoin be trading at in five years? What are the advantages of digital currency? The possibilities are endless.
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Manipulation by Big Players
The manipulation of the Bitcoin price index is not new. It is evident in the most recent all-time highs of Bitcoin.
Bitcoin (BTC) has been winning the public relations war against other cryptocurrencies and has been trending on social media for the past few weeks, which has helped it reach all-time highs.
The manipulation by big players such as Bitfinex and Tether shows how this cryptocurrency market is achieving all-time highs. Despite challenges with regulation, bitcoin will continue to maintain its dominant position in the cryptocurrency market even though it will face new competition from Ethereum and Ripple’s XRP token.
Conclusion:
This article looks at how the Bitcoin Price Index (BPI) is achieving new all-time highs. By understanding why the BPI is reaching new highs, you can make informed decisions about your investment.
