The bitcoin exceeds $1,100, your maximum contribution over three years

Bitcoin, the virtual currency used for transactions on the internet yesterday surpassed the US $1,100, its highest level in three years, and still aspiring to become a value refuge in a context of financial insecurity.

The record yesterday in the Bitcoin Price Index (BPI), an index that records the major exchanges of currency, confirming its good shape after becoming the currency with best results of 2016.

Since its inception in 2009, the bitcoin has been very volatile. In 2013 it had reached another record, up to US $1.165,89, but then it lost three-quarters of its value before recovering again. And in August the news of the massive theft of bitcoins by a group of hackers did fall more than 20%.

Analysts now believe that volatility will decrease to increase the volumes of Exchange, but also as a result of the strong dollar and capital controls, increasingly stricter in many countries of the world.

In recent months, the chaotic withdrawal in India of the two higher denomination banknotes or restrictions in China to purchase foreign currency have also contributed to increase its value. Since its inception, the currency was set not to exceed 21 million units, of which three quarters have already been created. The bitcoin are created by supercomputers and then redeemed online for products or services.

“We are creating few bitcoins and people see them as a good shelter against the devaluation of you monedeas them of their countries, and instead of buying dollars they buy bitcoins” explains Vinny Lingham, director of Civic, an American company specializing in digital identity protection.

“The bitcoin is becoming a refuge value”, adds, citing uncertainty in the emerging countries after the victory of Donald Trump, and predicts that the currency could reach the
$3,000 at the end of this year.

“The ‘milenials’ do not believe gold, as their parents. The bitcoin has become a reliable value if you live in a foreign market and you’re worried about your Government”, said Lingham, and cites the fact that the currency has risen above all in emerging markets.

A global phenomenon

In China demand of bitcoins climbs up the restrictions of capital “but not only in China, is a global phenomenon”, told AFP Bobby Lee, founder and director of the bitcoin BTC China Exchange platform.

“There are many examples of demonetization. In India they are withdrawing some bills, in Argentina also. That makes it more attractive to the bitcoin”says Lee, promising more regulation of digital currencies in the future, which at the moment is not thecase.

According to Dickie Wong, director of research at Kingston Securities, based in Hong Kong, many Chinese are changing their money in bitcoin as it devalues the yuan and stop purchasing US $500 thousand in foreign currency imposed by the ChineseGovernment. “The devaluation of the RMB (yuan) is the main problem,” he says.

The bitcoin now has a value of capitalization that exceeds $18,000 million, much more than other rivals “criptomonedas” but much less than other world currencies.

On the other hand Ajay Sunder, Vice President of Asia Pacific digital transformationin the consulting firm Frost & Sullivan of Singapore, explains that beyond the current context the bitcoin could be reinforced boom long term digital payments.

Generally the people feel more and more comfortable using payment systems digital and digital transactions. But the bitcoin are still marginal and it remains to be seen if they become massive,”said Sunder. (AFP)

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