Bitcoin Continues to Rally as Price Surges Past $8,000 Barrier

Monday, July 30, 2018 12:52 PM UTC

Monday, Jul. 30, 2018 12:52 PM UTC

Bitcoin's price has soared once again in the past week and some investors are increasingly excited about the cryptocurrency's future prospects.

<p>Bitcoin enjoyed another fantastic week as the price shot up by more than $1,000 to reach a high point of $8,430. It traded north of $8,000 over the weekend, a huge rise on a recent low of $5,785 recorded last month. The bullish trend has lasted for more than a fortnight now and some investors are giddy with excitement about the popular cryptocurrency’s short-term prospects. Bitcoin could now be on the verge of a dramatic comeback, which would spell good news for investors and<a href="" rel="nofollow"> sports fans</a> who like to use it for wagering purposes.</p><p>[/]{"component": "embedHTML", "code": "&lt;blockquote class=\"twitter-tweet\" data-lang=\"en\"&gt;&lt;p lang=\"en\" dir=\"ltr\"&gt;Capitalism is the American Dream. Bitcoin is the Global Dream.&lt;br /&gt;&lt;br /&gt;Now anyone can gain economic freedom, regardless of geography.&lt;/p&gt;— Pomp 🌪 (@APompliano) &lt;a href=\"\"&gt;July 28, 2018&lt;/a&gt;&lt;/blockquote&gt;\n&lt;script async src=\"\" charset=\"utf-8\"&gt;&lt;/script&gt;\n"}[/]</p><p>This time last year Bitcoin was valued at below $3,000. It then shot up in the second half of 2017 as it rapidly attracted the attention of a wider audience, with media attention whipping up enthusiasm and converts starting to proclaim the death of fiat currencies like dollars. It peaked at close to $20,000 by the end of 2017, but then the bubble burst and the euphoria dwindled. This shows that the price rise was driven by investors bidding to make a quick buck, and Bitcoin then quickly deflated as fear and despair resulted in an intensification of selling among investors.</p><p>This is a pattern that has been seen many times before with stocks. Once the asset bottoms out, you see a comeback. Commentators now believe that Bitcoin has hit its low point, the $5,785, and it is now time for a rally. You should always proceed with caution as Bitcoin, like all cryptocurrencies, is a highly speculative asset. But now seems like a good time to buy it if you are looking to make a quick buck. Bitcoin is no longer front page news, but it is becoming more widespread and huge tech firms are investing heavily in the Blockchain technology that underpins it in order to realize its vast potential.</p><p>That potential could be displayed amid significant investment from serious firms that have a vested interest in making it work and the talent to pull it off. With a limited number of coins available – Bitcoin has been designed to be constrained by a finite number of coins, which has led some to liken it to gold – that could send the price rising going forwards. Bitcoin bulls have long said it will surge back past the $20,000 mark after bottoming out, and that could actually become a reality in the second half of 2018.</p><p>The current trend is good news for<a href="" rel="nofollow"> sports bettors</a> who wager in Bitcoin. Rather than seeing their winning margins eroded by a price depreciation in the time it takes for a game to finish, they are seeing their winnings boosted by a rise in Bitcoin’s value. This allows them to be more relaxed and not need to rapidly convert winnings back into dollars as soon as a bet is settled. Volatility is always a worry with this young currency, but recent trends are positive.</p><p>Billionaire Wall Street investor Bill Miller this week declared that Bitcoin can be an asset for central banks as it is the cryptocurrency which has the most probability of being successful. “Bitcoin is the most stable, it has the greatest probability of being successful,” he said. “There’s some other ones that people like, but Bitcoin is the one I’m really focused on. We think Bitcoin could have enormous upside if it catches on, but we acknowledge that numerous hurdles mean that it is more likely than not that the experiment fails.</p><p>“Still, it is important to think about how valuable Bitcoin could be if the adoption continues to grow and the currency thrives. The grandest dream for Bitcoin would be for it to achieve the store-of-value status of gold. At this point, the best way to think about Bitcoin is as a non-correlated asset most similar to gold, except its much more easily transportable than gold, it can actually be used to buy things. If it becomes much more valuable its then likely that various central banks begin to think of it as another potential asset just like they hold gold. That would open up the market extremely significantly.”</p>
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