[Bit]coin flipping: Keeping it steady —bitcoin price hits milestone, fuels adoption
Snail on the athletic track crosses the finish line image via Shutterstock
Bitcoin has broken its own record as the price has been trading above $500 for six consecutive months. Its volatility has always been a real deal-breaker but it seems that the overall positive sentiment is fuelling global bitcoin adoption.
Bitcoin price has been steady for half a year, adoption is starting to increase and regulation is not so tough anymore. Here’s why volatility is no longer (too much of an) issue for Bitcoin enthusiasts:
EY Switzerland will become the first advisory firm to accept Bitcoin for its services. Starting in January 2017, it will be possible to pay invoices from EY Switzerland in Bitcoin, employees will receive a digital wallet, and a Bitcoin ATM will be put into operation in the main building. According to the official announcement, “the new Bitcoin ATM is part of an internal EY Switzerland digitalization program and is intended to make employees more familiar with the topics of blockchains and cryptocurrencies.”
Meanwhile, a Japanese insurer is preparing to launch an insurance product which covers losses and damages at Bitcoin exchanges. As cyber attacks intensify, Mitsui Sumitomo Insurance has come up with a way to shelter both exchanges and their clients from losses and damages; it will also pay for the costs of dealing with problems. This idea may help ease adoption anxiety, Nikkei revealed.
And now the good news
This new digital reality would mean nothing without a steady Bitcoin price, which we now have. CoinDesk noticed that the Bitcoin price has been trading above $500 for the past six months. At press time, the price of Bitcoin was $738.
Although the price skyrocketed three years ago, reaching an all-time high of over $1,100, it declined below $500 less than one month later. Bitcoin came close to keeping the price steady (even without counting the December fall) but the period ended abruptly after four months, thus making this period (six months and counting) a record for the continuity of Bitcoin’s price.
To 2017 and beyond
It is safe to conclude that 2016 has been a good year for Bitcoin. Although Bitcoin enthusiasts still fear that blockchain may outperform the digital currency, Bitcoin has done well on all fronts: regulation, price, adoption and even news coverage. After looking at the data collected by Coin Dance, Bitcoin Magazine identified a few countries where Bitcoin adoption has increased this year, such as Colombia, Brazil, Venezuela, Ukraine and Turkey. The common denominator seems to be distress (either political or financial).
As far as regulation is concerned, Russia famously relaxed its view with regard to the digital currency and China got serious about embracing Bitcoin. The latter is also (partly) responsible for the boost in Bitcoin demand —after the yuan started to weaken, many people found an ally in Bitcoin.
Let’s see what 2017 has to offer.