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Bitcoin surpassed the 700$ and is heading to 850$ according to experts

The recent increase in the price of the bitcoin has caught the attention of all the experts and users of the criptomonedas. At the time of writing this article the price of the bitcoin is around 710 dollars, prices that did not arrive the cryptocurrency since midJune of this year.

The average price of the bitcoin from August 3 to October 19 was $590. However, as of October 20 the price of the bitcoin began to show an upward trend, which wasthe price of the cryptocurrency to reach a maximum of 724 dollars yesterday. The increase of 12.99% of the price of the currency is based on an increase in the demandfor Chinese investors, and a general increase in the adoption of the cryptocurrency.

THE INFLUENCE OF CHINA ON THE DEMAND OF THE BITCOIN

At beginning of this week the yuan recorded a fall, event that attracts, lately, a lot ofChinese who demand bitcoins to protect their money from devaluation of the currency. However, this time the price increase of the bitcoin is more related to the fact that China’s Government has begun a crackdown to long-term management of heritage (WMP for its acronym in English) in the country.

In an attempt to control the financial risks that could limit the country‘s economy, China’s Central Bank is doing a monitoring test on the WMP, investment products which are managed offbalance by the banks, to 1.9 trillion dollars in assets blocked with this type of investment have been exempt from supervision for more than one year.

Taking into account the lack of transparency about the destination of the funds of the WMP, an increase in the regulatory oversight over the 1.9 trillion dollars, of which many investments have a suspicious origin, it is causing the migration of funds toareas where intense scrutiny does not have much effect. By what the bitcoin could have become the objective of the above-mentioned funds, what brings I get bitcoinsChina’s demand.

THE GROWING SUCCESS OF THE SEGREGATED WITNESS

As it was mentioned previously, Segregated Witness is now available in the version0.13.1 Bitcoin core. Due to the need to solve problems in the network and search for increase scalability in this, the community of users of Bitcoin said support was the feature after having experienced delays in the Bitcoin network for more than one year.

Increased capacity of the blocks in terms of the number of registered transactions, the Elimination of the malleability of transactions, an increase in security for multiple signature portfolios, the increase in the performance of nodes, data reduction corresponding to the signatures of transactions in the blocks and other features, could improve the network in such a way that the confidence towards Bitcoin would increase considerably , and with this the demand for the cryptocurrency, what boils downto a price increase.

NEW EXPECTATIONS CREATED IN BITCOIN

Needham Bank, American Bank known for making accurate estimates about the price of the bitcoin, published new projections that estimated that the price will be around the $848. Spencer Bogart, author of the latest report published by the Bank, points out that the price will be around $800 since the adoption of the cryptocurrency trend goes faster than anticipated in March; Bitcoin fundamentals are improving; upcoming improvements in Protocol that presented an attractive optionality in the price of bitcoin.

In addition to point out that the price of the bitcoin is being defined by the growthof two sources of main demands, which are its value as “digital gold” and its utility as a channel for payments, have also noted how have evolved some of the more salient features of the bitcoin.

The evolution of Bitcoin is notable due to the fact that the cryptocurrency volatilityhas declined significantly, which increases the confidence of investors; the missing correlation with other asset classes; the substantial increase in the liquidity of the currency; the halving applied the grid at beginning of July; the striking increase in transaction volumes and the rate of hash; the integration of the Segregated Witness andthe preparation for the arrival of Lightning Networks and European; the increase inprivacy and the development of smart contracts.

The increase in the demand of Bitcoin is closely linked to the increase in the adoption of the cryptocurrency advances that are perceived in the network and the community. However should take into account that there are certain risks (hardfork, regulation, other criptomonedas, cyberattacks) that should keep us alert when it comes to price fluctuations. Although the situation in the Bitcoin network see

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