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8 December 2017

Why Has Bitcoin’s Price Gone Up So Fast?

The average cost of a Bitcoin crossed $16,000 on Thursday, though on some individual exchanges where it is traded, the value was even greater.

SAN FRANCISCO — Bitcoin has been in a bull market like few the world has ever seen.
At the beginning of the year, the price of a Bitcoin was below $1,000. It hit $5,000 in October, then doubled by late November. And on Thursday, less than two weeks later, the price of a single Bitcoin rose above $20,000 on some exchanges, according to Coinmarketcap.
The latest price spike has been credited to signs that Wall Street companies plan on bringing their financial heft into the market.
At the current cost, the value of all Bitcoin in circulation is about $300 billion. To get a sense of how big that is, all the shares of Goldman Sachs are worth about $90 billion.
The gains have been driven by several other factors — perhaps the most important being the irrational mentality that can take over in speculative bubbles.

But most people buying Bitcoin are doing so in the belief that others will want it even more in the future. The gains, though, have many people, even Bitcoin believers, anticipating a big crash.

Currently, the average price of one Bitcoin is about $16,195, according to Blockchain.info, a news and data site.

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