Bitcoin has finally surmounted the maximum psychological barrier of, passing ₦3,640,000 ($10,000) and showing no signs of stopping. Carrying out a week of consolidating at all-time high levels around ₦2,912,000 ($8,000), Bitcoin found the strength to go up powerfully during the weekend.
Black Wonderful Friday saw the currency hit new highs in top of the ₦2,912,000 ($8,000s) before surmounting the ₦3,276,000 ($9,000) level Saturday and immediately charging toward the ₦3,640,000 ($10,000) mark Sunday. These price increase come about it unusually high volume, with anxiety about missing out (FOMO) bringing new investors in rapidly.
Bitcoin has received a sensational year, by anyone’s accounting. Having started the entire year at only under ₦364,000 ($1,000), the purchase price jump to over ₦3,640,000 ($10,000) represents some incredible changes. This growth is not just a flash-in-the-pan either, but is supported by growing mainstream adoption and massive trading volume. In only days gone by 24 hours Bitcoin’s trading volume has exceeded $5 bln.
The season has been filled up with major announcements that signal the widespread acceptance and growth of Bitcoin. Extensive coverage by mainstream analysts was followed closely by huge growth in Bitcoin hedge funds and institutional investors.
Now the launch of regulated futures markets is imminent, and Bitcoin has transformed into the investment du jour of the financial community. Whether or not they like it or hate it, big bankers can’t keep their mouths shut about Bitcoin.
The interest Bitcoin has garnered from mainstream media has been astounding. Only last year, news would spread of a nearby newspaper mentioning Bitcoin, and the city was thrilled. Now, major publications mention Bitcoin daily, and nobody is surprised. Bitcoin has literally gone viral.
Further, the growth in hedge funds that spend money on cryptocurrencies has exploded as well. As early as August, the headlines that 70 new funds could possibly be starting was a headline. Now, the existence of 120 new or modified crypto related funds barely warrants a mind nod.
Another major contributing factor for Bitcoin’s sizeable gains is the truth that Bitcoin futures will be traded on major regulated markets. Two of the world’s largest futures markets, the Chicago Mercantile Exchange (CME) and the Chicago Board of Options Exchange (CBOE), will quickly launch Bitcoin futures.
As adoption increases, the network is forced to help keep pace. However, Bitcoin has continued to keep a massive transaction volume as the purchase price has increased. As shown below, the daily transaction volume has become over $2 bln.
As transactions continue steadily to proliferate, Bitcoin mining is becoming increasingly profitable as well. Miners today make ₦546 Mln ($1.5 mln) in fees alone, excluding block rewards. Look at the chart below, as the marketplace has increased, the mining returns have increased exponentially as well.
All of this growth in adoption isn’t localized either. The whole global community has begun to embrace Bitcoin, from Venezuela to Zimbabwe, and from South Korea to Switzerland. The international transactions numbers have now been steadily rising since Bitcoin’s inception.
The numbers are staggering, but what exactly is most encouraging is that the growth in markets hasn’t been geographically localized. An easy perusal of charts from various countries around the globe suggests that adoption isn’t localized, but global, and nearly uniform.
Regions with greater usage of technology have, needless to say, seen the most consistent adoption curves. For instance, think about the European adoption graph below, and note that the adoption has steadily grown, however the huge jumps aren’t the norm.
However, other nations with substantially less democratized technology are simply now catching up. Venezuela is a superb example; since the Bolivar has devalued, the adoption of Bitcoin has risen exponentially.
The main growth in global access has been the sudden upsurge in Bitcoin ATMs, as well. An amazing 4.8 Bitcoin ATMs are installed somewhere on a regular basis, and those numbers is only going to continue to cultivate as new ATM companies come online all of the time.
With all this news, it should be no surprise that Bitcoin has crossed the $10,000 mark. And certainly, as adoption continues to grow, the price will undoubtedly increase, since new users must buy in at current rates and will drive the price up.
Whether the bulls or bears will ultimately have their way remains to be seen, but an analysis of volume and transactions would indicate that not only is there no bubble, but the vast majority of the public are now beginning to gain awareness of digital currency. Coinbase, and other exchanges report huge moves in user growth. This could be just the beginning.