The total value of all Bitcoin in circulation surpassed a record 14 billion USD after the digital currency rose by 5%, reaching the highest levels in three years and having increased in value more than doubled this year. The price of a Bitcoin reached 875 USD based in Europe exchange Bitstamp, which is its highest level since January 2014. This means that the crypto-currency will mark its best performance of the day by six months.
When compared with levels around 435 USD at the beginning of the year, many experts associated the appreciation of Bitcoin with the steady depreciation of the Chinese yuan, which decreased by almost 7% this year.
Data show that the majority of Bitcoin trade is happening in China, so that the growth of demand there is likely to have significant impact on price.
The Bitcoin is based on the Internet crypto-currency, which can move money around the world quickly and anonymously, without the need of a central authority for managing it. This makes it attractive for those who want to circumvent capital controls in China.
The digital currency is still far from its value at the end of 2013, when it traded at 1,163 USD at the exchange Bitstamp. But as the system continues to add new Bitcoin, currently at a rate of 12.5 Bitcoin every 10 minutes, the total value or “market capitalization” of the crypto-currency surpassed the peak of 2013 from about 14.01 billion USD. This means that its overall value is same as an average company on the composition of the British FTSE 100 index.
“The Bitcoin was supported by demonetization in India and global political uncertainty”, said the founder of the site for data analysis Cryptocompare, Charles Hater. It turns out that many people look to commodities to hedge the risk of an economic slowdown; some people buy gold, others buy silver, but most interestingly, people buy Bitcoin.