Bitcoin continues to enjoy a comfortably high price, about $1800 USD to Bitcoin at the time of writing this article. The cryptocurrency is no stranger to high times, nor is it completely safe from another monumental drop. However, something feels different about this price. It does not feel too far off from the feeling I have about Dogecoin and some other alts also enjoying a revival in both price and community. Trading price of Bitcoin has stayed over $1000 for the past two months, and has been over $1500 for the majority of May thus far. What might make it different this time for Bitcoin?
Japan recognizing Bitcoin
The path to wider adoption sadly means that we still need to operate within the bounds of the boring stuff. While a nation moving to recognize and enshrine something in law may sound lackluster, its implications are anything but that. Japan’s bill concerning Bitcoin was largely aimed at cracking down on money laundering, it did recognize Bitcoin as a legal method of payment for goods and services.
Though we know that a method of payment really is anything that the market allows for -barter systems could trade yams for services, etc- having a definitive law both regulating and protecting this digital asset could be one of the reasons this price bump may be the new norm. When governments can tax something, they want to make sure that something -in this case Bitcoin- can be a viable source of revenue. The parts of markets where governments do have influence do not want to see Bitcoin fail or drop significantly in price, it just would not serve logical interests.
There is a growing demand for Bitcoin
In the past year alone, searches for Bitcoin online -at least via Google- have grown significantly. Though I’m not the only person saying it, I have written in the past about Bitcoin’s need to be more well known for it to really take off, this may be the start of people realizing this. As a Bitcoin Evangelist, I see first hand about how knowledge about the coin has directly translated into demand from those now in the know.
Whether the newfound demand is for more independent wealth, hopes of freeing oneself from institutionalized finance, or simply wanting to buy in before the price really explodes, the increase in demand itself is clear. The market mechanism working here is by the book: Bitcoin has a limited supply, demand for it is growing, this makes current and potential supply more valuable.
No longer just for nefarious activity
Even with the most recent ransomware attack bringing Bitcoin some unwanted attention, the price has not dropped nearly as much as I would suspect this kind of event would have hurt the coin even last year. We may now be in a place where Bitcoin has finally shaken the reputation of a criminal currency that has dogged its entire existence.
The market’s response to this attack appeared to only be a bit harsher than it would be to cash or bear bonds. While this attack did not do Bitcoin any favors, public reception seemed to finally blame the criminal act and not the currency. We may be witnessing the start of the Golden Age of Legitimate Bitcoin.
Disclaimer: This is my opinion, and should not be confused with investment advice. The only advice I am willing to give about investments is: never invest more than you can afford to loose. If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.