Bitcoin price going near $5,000 as we all stand in awe
Posted by LucyBTC on 01/09/2017.
Yesterday was a big day for BTC, and we were all amazed to see how fast the coin is approaching a nice round figure, $5,000. The bitcoin price hit $4,802, but then slowly moved back to around $4,762. So, what should we think about all this progress? Is it a real, solid growth, or it’s more of a bubble artificially created? Some financial analists tend to believe there’s a vivid resemblance between the current stage of bitcoin gains and the way stocks surged before collapsing. The main comparison is made with Nasdaq telecom stocks, which grew over 700% during 5 years timeframe, after which they collapsed massively with over 90% in the next 2 years. It seems the major growth happened following 2 events or chain of events: first, many started buying massively this month after they noticed the pretty smooth fork happening on August 1st. Secondly, an important trigger has been the fact that Wall Street investors have increasingly become interested in digital currencies and investments in digital assets are booming.
Truth is even the most enthusiastic crypto fans agree there is a level of speculation in how digital currencies bloom, especially for bitcoin, but they also agree that great technology and innovation can arise from all the movement in digital assets. We can notice though than not just BTC has shown a great rise, but also Litecoin or Ethereum. One very important push is coming on behalf of government agencies, as they started to provide generous grants for research groups to study and apply the blockchain technology in various systems and with different functionalities. Let us all throughouly review the trends and invest with caution, while hoping that no dramatic change will take place in the future.