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Despite Detractors Bitcoin Remains Best Performing Currency
Julio Gil-Pulgar · @gil_pulgar | Oct 07, 2017 | 11:30
Bitcoin’s supremacy is strengthening in the cryptocurrency market, as its resiliency continues to impress experts and Wall Street’s top executives. The financial markets are clearly reflecting this sentiment as Bitcoin’s value now surpasses the US$ 4,300 mark.
Bitcoin Leads the Cryptocurrency Market
Bitcoin maintains its preeminence not only among fiat currencies but also among the other cryptocurrencies. According to a recent CNBC article, “Bitcoin was the top performing cryptocurrency in the last three months, despite the mega-rally earlier this year in so-called alternative coins, or altcoins.”
The CNBC article also points out the fact that in this quarter investors have started to move back to Bitcoin from altcoins.
Earlier this year, some investors had moved away from Bitcoin, becoming interested in altcoins, such as Dash, Ether, and Monero, either as a hedge against the cryptocurrency’s volatility or because they had missed a Bitcoin rally.
Bitcoin’s superiority is most remarkable when considering that, in general, cryptocurrencies have skyrocketed. According to Business Insider, “the market for cryptocurrencies, digital coins powered by so-called blockchain technology, is up by more than 720% since the beginning of this year, at $145 billion.” In this regard, the article underlines that Bitcoin has increased by 450 percent in the last nine months.
In parallel, hedge funds are reportedly pumping millions of dollars into Initial Coin Offerings (ICOs).
Bitcoin Continues Marching Towards $5,000 Mark
Bitcoin has shown its capacity to adapt to the changing environment and absorb tremendous shocks. For example, when Chinese exchanges imposed transaction fees earlier this year, trading volumes fell dramatically. As a result, on January 25, 2017, Bloomberg reported that BTC trading volume had plunged 98 percent compared with the first days of 2017.
Nevertheless, within a few months, showing remarkable resiliency, the value of the cryptocurrency took off in an impressive ascending trajectory and on September 1, 2017, Bitcoin pierced an all-time high value of $5,000 USD in some of the Asian markets.
Shrugging off the Chinese government crackdown on Bitcoin exchanges and anti-Bitcoin comments made by JP Morgan CEO Jamie Dimon, after a brief dip, Bitcoin’s value is rapidly recovering and now exceeds the $4,300 USD target.
Similarly, the main altcoins are picking up steam. Ethereum recovers from the South Korean’s banning of ICOs, climbing over $300 USD per coin, as of writing. Dash, on the other hand, continues its ascendant trend, topping the $300 USD mark.
Encouraging news reports that might further sustain Bitcoin’s spectacular price trajectory are starting to appear again.
Last week, Bloomberg reported that the Goldman Sachs Group was considering the possibility of setting up a dedicated desk to buy and sell cryptocurrencies.
Moreover, positive news reports from the Asia region are counteracting the effects caused by China and South Korea’s imposition of restrictions on cryptocurrencies.
Most recently, Taiwan expressed Bitcoin-friendly sentiments. Wellington Koo, Chairman of Taiwan’s Financial Supervisory Commission, gave assurances that Taiwan would not prevent the development of ICOs and cryptocurrencies.
In effect, Koo said in a joint session of the Parliament and cabinet, “Taiwan would not regulate against the technology,” reported The News Lens.
Japan is already a Bitcoin-friendly country. Since April 2017, Japan has recognized the digital currency as a legal tender and now the country is poised to take over as a leader in the cryptocurrency market.
Therefore, it is entirely within the realm of possibility that while maintaining its supremacy among altcoins, Bitcoin might break above its previous $5,000 USD record-high price in the next few months, Or, even, as the cryptocurrency expert Thomas Glucksmann recently predicted in an interview with CNBC, Bitcoin could get close to $6,000 USD by the end of 2017.
What are your thoughts about Bitcoin sustaining its supremacy over other cryptocurrencies? Do you think that prices will continue to climb? Let us know in the comments below!
Images courtesy of Shutterstock, BitStamp
