January 5th, bitcoin prices hit a record high of 8000 yuan, the highest price of $8725, setting a new record. The current price of gold is $1164 / ounce, equivalent to RMB 8019 yuan, the price of bitcoin more than the price of gold.
Bitcoin is the best investment in 2016, up 260% a year
As to why there is such a rise in the short term, fire currency analyst analysis, this is the result of changes in supply and demand in the short term bitcoin. Bullish sentiment gained the upper hand, pushing the price up.
Another analysts believe that geopolitical instability, increased interest in the interests of professional investors and other multiple factors, but also the cause of bitcoin prices steadily rising in the past few months.
In addition, the analysis of fire coins COO Zhu Jiawei: the underlying technology block chain bitcoin has been the world's major banks and financial institutions recognized by the beginning of 2016; the central bank held a symposium on the research of digital digital currency, currency and block chain technology; this year the domestic property market, including the stock market, gold and other mainstream investment products, the overall poor performance; and bitcoin in July 2016 second halving production factors such as the promotion of market mood swings, push bitcoin prices.
Zhu Jiawei also said that bitcoin and block chain technology is widely used to promote bitcoin prices is one of the reasons. Bitcoin can be used as a means of payment, bitcoin blockchain can issue stock and file registration application in the world in some countries, the overall application of the blockchain development started in this year, these have contributed to bitcoin prices overall rose in 2016 and early 2017 trend.
Who are buying bitcoin? The largest buyers from China
Interest in places such as Venezuela and India has pushed up the price of bitcoin: Venezuela's currency has lost much of its value, and India has not recently been able to issue the largest denomination.
From a broader perspective, the United States and European politics isolationist tendencies of Donald J Trump (Donald J. Trump) the election highlighted the tendency to bitcoin brings new advantages, because it can hardly regulated to flow between countries.
Analysts believe that the more people are expected to be a new obstacle, the more expected bitcoin will have a value of currency in circulation between countries."
Today, however, most of the people who buy and sell bitcoins come from one country: china. Some analysts said that some Chinese trying to buy bitcoins, to avoid capital controls.
However, a large number of transactions in China's bitcoin exchange, many of which are carried out through automatic software. But today, the Chinese exchange market price has been higher than the U.S. exchange of nearly 700 yuan, which also shows that stronger demand from china.
The importance of speculators suggests that the value of bitcoin is still driven by expectations about the way it will be used in the future, rather than by the use of the real world, which is often difficult to quantify.
Compared with 13 years, what is the difference?
The last round of bitcoin is the hottest market price is 8000 yuan. 8000 like a standard. And this time, bitcoin broke through 8000 yuan, and what is different in the past 13 years?
Analysis of fire coins network COO Zhu Jiawei said that this round of bitcoin break 8000 yuan rose to 8000 yuan in 2013 and the situation is different. The first bitcoin trading volume now and then cannot be mention in the same breath, is about 37 times of the year. 2013, when the highest price of 8000 yuan fire coins, a week trading volume of 393 thousand bitcoins, the amplitude of the week up to 103%. Transaction volume is small, the impact of large funds.
"Today, bitcoin price break 8000 yuan, trading volume of fire currency net 4 day festival is 7 million 350 thousand bitcoins, a week is expected to double, is 37 times the volume of transactions, after 4 days of the price of the amplitude of 15.95%, than the more stable." Zhu Jiawei said.
For the bitcoin prices exceeded a record high of 8000 yuan, Zhu Jiawei believes that users still relatively calm, according to the data, the price once again exceeded 24 hours before 8000 yuan, bitcoin trading volume is almost unchanged compared with the previous, is about 2 million pieces per day, about 17 billion transactions in RMB / day, "because of the investors already have psychological expectations."
In fact, when the bitcoin application has been promoted, the price has stabilized. Although the 2016 to 2017 bitcoin rose 240%, investment in many varieties come out on top, but in 2016 a year, according to the fire coins network data, bitcoin daily trading in 10% and above the number of days to 5 days, while in 2013, the daily rise and drop hundreds of 10%, that bitcoin trading the market has become more mature and stable.
Bitcoin attributes like gold
The price of bitcoin volatility makes many analysts believe that it is not much like money, but more like gold, such as commodities, its value comes from scarcity. In terms of bitcoin, the rules of the network can only create up to 21 million bitcoins.
Due to the recent price increases, the price of 1 bitcoin has been shocking beyond the price of 1 ounces of gold - today, about $1 ounces of gold worth $1164.
Many bitcoin companies want to edit the underlying bitcoin software, changing the amount of transactions the network can handle every day. However, the proposed changes are opposed to the team of coders who are responsible for maintaining the underlying bitcoin software. A lot of bitcoin companies in China are on the side of the coders.
This divergence leads to a block of bitcoin blocks can not be resolved, some transactions take several days to complete. This slowdown makes it difficult to use bitcoin for daily payment.
However, during the dispute, the original bitcoin wallet and trading software security has been quite stable. As a result, it can be a potential alternative to those countries that are less secure than monetary and financial institutions.
Despite these new requirements, but the current issue of the total value of all bitcoin is about $16 billion, equivalent to only a mid sized American company assets, even not enough to maintain the desired amount of Indians used the virtual currency store of wealth or the needs of the people of venezuela.
But this point once again pointed out that speculators the importance of their own judgment bet, think in the near future, the world will use bitcoin to meet the daily financial needs, bitcoin prices will be raised a lot.
Analysts believe that only 10% of bitcoin is available for the moment, more than 90% of the expectations associated with the use of the future."