Bitcoin which is the world’s most popular digital currency, has been on a roll lately. The thing is — nobody is really sure why.
Last January, it dipped well below $200 but now bitcoin traded at more than $410 Tuesday afternoon according to the CoinDesk Bitcoin Price Index. Why is that so strange? It’s about 25 percent higher than the same time last year but well below the historical high of about $1,150. So that’s got people wondering what’s going on.
It all started about a month ago when bitcoin traded below $240. This came at the end of a steady stream of good news for the digital asset. Even with recent favorable regulatory rulings, press coverage and business investments, many experts are struggling to explain the one-month jump of more than 70 percent.
Just to give you something to compare it to gold is down about 5 percent on the year, and slightly negative on the month.
Where many in the bitcoin community insist that the daily price of Bitcoin is not a relevant metric that should be followed as it distracts from the world-changing potential of the technology. Do you agree?
Does such a significant change warrant questions?