November 30th, 2013 → 9:17 pm @ Bitcoin Unveiled
In a mere two months, the price of one Bitcoin has skyrocketed from about $100 to now $1200. When looking at the chart below, you can see the amazing growth, increasing at an exponential rate. So what is causing the increase in price?
1.) Media coverage: Every, and I mean literally every, news website, television program, and blog has started writing about Bitcoin. It is a phenomenon and people who aren’t necessarily excited about e-currencies are now excited due to Bitcoin’s growth.
2.) China’s acceptance of the currency: In the second half of October, Baidu announced its acceptance of Bitcoin to pay for its services. For those of you who don’t know what Baidu is, it is considered the “Google” of China. Being one of, if the not the most, viewed websites in China, the awareness of Bitcoin in China has spiked, causing a new market in Asia for Bitcoin to emerge.
3.) The greater fool theory: With all this growth, press has pumped the value of Bitcoin to all time highs. Although I am not saying the currency is going to crash, I believe many people are currently entering the market without much knowledge of what Bitcoin actually is. They see the amazing returns early investors have generated, and they would like to capitalize on the growth as well. With increased demand with new investors entering the market, price have risen greatly.
