Bitcoin passes above $1,000 for first time since 2013

Bitcoin is the most popular cryptocurrency based on the concept of BlockChain, it is very popular in the criminal underground due to the difficulty to de-anonymize users that chose it for their payments.

More than 5 Million Bitcoins were traded in the last 24 hours of 2016, roughly 38 Billion yen were traded (~$3.2 Billion). The China is the country that most of all have invested in Bitcoin in the last months due to the drop of the national currency, the yuan.

“Bitcoin trading volumes by currency points to a significant volume in bitcoins purchased in China. Over 5 million bitcoins were traded in a 24-hour period since the turn of the year, with nearly 38 billion yen traded (approx. $3.2 billion), according to figures from Cryptocompare.” reported CryptocoinsNews.

Chinese investors are fueling demand for the popular crypto currency, also in response to the new regulations by the Chinese Government applicable from January 1 that resets the annual $50,000 forex purchase quota for individuals.

Chinese people fears the new regulations on cash transactions and overseas transfers could hide a form of capital controls.

Middle class and wealthy Chinese have been converting money into other currencies to protect against devaluation, and Bitcoin is considered a valuable alternative.

“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.” continues CryptocoinNews,

According to the experts, Bitcoin performance has also been caused by the lack of supply of cash some countries like India. In India, the Prime Minister removed high-denomination banknotes from circulation at the beginning of November 2016.

“It is also may appeal to those worried about a lack of supply of cash, such as in India, where Prime Minister Narendra Modi removed high-denomination bank notes from circulation in November.” reported the Reuters.

“The growing war on cash, and capital controls, is making bitcoin look like a viable, if high risk, alternative,” said Paul Gordon, a board member of the UK Digital Currency Association and co-founder of Quantave, a firm seeking to make it easier for institutional investors to access digital currency exchanges.”

[adrotate banner=”9″]

Pierluigi Paganini

(Security Affairs – crypto currency,  Bitcoin)