For all you cryptocurrency naysayers, here’s a fact for you; the bitcoin price rallied to 458 USD last Thursday, marking the first big surge in price for several months and spurring a frenzied round of trading. Here are the stats, according to CoinDesk:
“Volumes rose by 2.3 times to nearly 6m BTC traded over the last seven days, compared to a week earlier. The stage was set for a price surge a week ago, as the markets digested the news of the inter-continental dark markets bust called Operation Onymous.
In the last week, prices swung a massive $97.57 from a trough on 11th November to a peak two days later. The price rose from $360.58 at the week’s bottom to $458.15 at its top, according to the CoinDesk Bitcoin Price Index.”
Bitcoin’s price experienced a huge decline between June and September, dropping almost 50%. There are many theories that purport to explain this decline. As they always have, the most negative forecasts see it as the beginning of the end for the cryptocurrency. A more feasible explanation, however, is that the bitcoin economy is going through a period of primarily horizontal growth.
Investors and analysts who are not familiar with the digital currency’s growth trajectory use price first and foremost as a measure of bitcoin’s success. In reality, there are many more factors at play. One of the most prominent is the fact that many digital currency adopters are currently transacting in bitcoin, but exchanging it for fiat currency to hold their wealth, ultimately lowering the price. There are many such considerations that weight on the price of the bitcoin.
With every rise and fall in price come a fresh round of predictions for the bitcoin’s future. While price is an important factor to consider, it is important to remember that it is not the sole marker of bitcoin’s success. Bitcoin and blockchain technology are playing the long game. With a year full of quiet adoption and expansion, bitcoin is just taking another step towards reaching critical mass.