The Price of BTC Seems to Not Stop Growing Even Higher

This size of the currency ratio is the highest since the November of the year 2013. Just earlier this year the price of the bitcoin was around half the size it is at the moment. The increase in the value of the latter cryptocurrency, which is, by the way, the most popular cryptocurrency, is explained by a few factors.

Most importantly, the devaluation of the regular currency makes people to invest into the cryptocurrency as an alternative. This, actually, has happened in China, which citizens have become the number one investors in Bitcoin. As it has just been explained, this was conditioned by the decline of the China’s national currency, which is the yuan. On the last day of the year 2016, that is, on the 31st of December, 2016, over 5,000,000 Bitcoins were traded in China, which makes up to more than 3,000,000,000 USD, which, in turn, amounts to almost 38,000,000,000 yen.

In addition to the above mentioned, the plans of the Chinese government to establish a quota for forex (foreign exchange) purchase from the first new year date, that is, the 1st of January, 2016, leaves no other options for the Chinese people than to trade the digital currency chosen, which is, of course, the most widely used one – Bitcoins. The actual quota set is 50,000 United States dollars.

Furthermore, the middle and upper class Chinese are fearing that this initiative of the government has been aimed at controlling the capital. As CryptocoinNews has reported:

According to Bloomberg, the yuan finished 2016 with a near eight-year low as middle-class and wealthy Chinese continue to convert money into other safe assets and currencies, with bitcoin a notable example of playing the role as an asset. While China grapples with the outflow of capital, new regulations that have stoked fears of capital controls have been refuted by central bank officials.

If you remember our previous article about the BTC price in India, the increase in the cryptocurrency’s value can also be caused by the intentional denomination. As regards the impact on an outside world, keep in mind that BTC is also an anonymous currency, which is used to transfer payments even for the cyber criminals, as it is in the case of ransomware viruses, for example. Thus, the victims of such cyber threats can expect to receive higher payment demands. Consequently, users must take the preventative measures for such infections more seriously, which is the updated software, reliable and updated antivirus software and general carefulness surfing the Internet, such as avoiding suspicious sites and clicking on suspicious links and ads.

Source: securityaffairs.co.