Bitcoin Digital Currency Hits Three-Year High of $1,000

Posted by Chris Morales on Tue, Jan 03, 2017 @ 04:29 PM

On January 2, the value of Bitcoin passed the $1,000 mark for the first time in three years. The website, which monitors the value of various digital currencies, show that the current price of a Bitcoin is now $1,025 and that the value of all units in circulation is now worth $16bn.

Bitcoin was created as a web-based digital currency that enables transferring money across the globe quickly and anonymously. One of the main advantages of Bitcoin is the no need for central authority, which makes the cryptocurrency so attractive for those wanting to evade taxes, launder money, fund hacking attacks or engage in other illicit behavior.

Over the past few years, Bitcoin has become more mainstream attracting the interest of hedge funds, brokerages and other institutional investors, especially as risks for traditional currencies increase.

A number of factors can explain Bitcoin’s big lead. Some of the major ones are the uncertainty in geopolitical aspects, increased number of investors who are keen to trade in assets with a standard, and devaluation of Chinese currency Yuan.

In addition to Bitcoin, all major cryptocurrencies such as Ethereum, Ripple, Litecoin, Monero and Dash, have gained good results as well.