Bitcoin Prices Are Surging, and People Have No Idea Why

Bitcoin Prices Are Surging, And People
Mandatory Credit: Photo by Mark Lennihan/AP/REX/Shutterstock (6035417a) Bitcoin logos are displayed at the Inside Bitcoins conference and trade show in New York. About $13 million in bitcoins will be auctioned in Sydney in June after Australian police confiscated the digital currency as proceeds of crime, an official said Australia Bitcoin, New York, USA
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* The market value of crypto-currencies has reached all-time high
* A single bitcoin is now worth more than $2,000
* Analysts claim unsteady global markets may be behind rapid growth

2017 has been good to bitcoin. The crypto-currency reached a new high at the tail end of last week, with stock prices trading upwards of $2,200. Today, a single bitcoin is now worth more than $2,000. (For reference, a single coin was worth roughly $450 this time last year.)

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A maturing market, current White House instability and to a lesser extent even the latest ransomware attack are all believed to have helped contribute to bitcoin’s overall growth. A weaker U.S. dollar is also said to be a factor as people may feel more confident investing in a currency that isn’t backed by the government.

But despite growing popularity, bitcoin is still a relatively small-scale service. The system itself sports a limited capacity, which experts say can only handle around seven transactions per second. Compare that to more traditional payment systems that are able to handle thousands.

As a whole, the total value of crypto-currencies is said to be worth near $79 billion. But while bitcoin is arguably the most well-known, a growing demand has made it slightly less relevant. In fact, bitcoin itself only accounts for about half of the overall crypto-currency market, with other services like Ethereum and Ripple already beginning to make a splash.

So, what happens next? Unfortunately, bitcoin’s future is still anyone’s guess. As a company, bitcoin has had a tumultuous past few years, and experts are currently divided on how they foresee its future. Some believe the stock will continue to rise amid growing White House turmoil, while others are staunch believers that the crypto-bubble will eventually burst.  

Either way, one thing is clear: As the dollar drops, bitcoins and other crypto-currencies will continue to rise.