This some have attributed to a number of reasons, mainly that investors now have been expanding their reach into the world of cryptocurrency as it has become one of the more profitable assets on the market
Jukebox 9 Jan 2020 0
In light of the speculations of war between the U.S and Iran, investors around the world have gone wild as they are wont to do in the face of crisis. Due to this, the value of Bitcoin has appreciated, with the price of the cryptocurrency moving up a full 5% since last week.
This is attributed to the inflated prices of gold and oil in these uncertain times, and to protect their gains, investigators are hurrying to grasp what they can that can withstand economic instability.
Another reason for this is also Iran’s progress and proliferation of Bitcoin usage in its day to day, a direct result from the economic sanctions the country has faced from the U.S under the Trump administration as well as a safety measure against the often unstable economic situation.
It is not fair, however, to attribute completely the rise in Bitcoin prices to this dispute between Iran and America, precipitated by the drone strike initiated by the United States that killed a well-known military commander in Iran. In 2019 alone, Bitcoin saw a rise in its prices which cemented its status as one of the best performing assets in the world at this time, and made more than thrice its estimated value from many companies.
An analysis of Bitcoin as conducted by CoinDesk in 2019
Image Source: CoinDesk.com
Research conducted earlier in September of last year by the CoinDesk cited Bitcoin developer, Jimmy Song as saying,
[Demand for bitcoin] is going to be felt in distressed economies much more than first-world economies. That’s to be expected because they feel the impact of inflation much more.
The report stressed that unlike the previous years, Iran seems to have taken up the use of cryptocurrency as a means of storing wealth, as it carries value in many economies and is not subject to inflation as regular currency is.
Hassan Rouhani, Iran’s President recently said last December that in wake of the U.S’ economic sanctions and discriminations against Muslims in the Middle East, Muslims must be proactive and consider getting their own cryptocurrency that will be beneficial in protecting themselves from the U.S’ uncalled for sanctions.
He said this is needed to “save themselves from the domination of the U.S dollar and the American financial regime.”
A cryptocurrency researcher named Mati Greenspan shared that one reason for the spike in Bitcoin value could be due to investors siding with gold as it is an asset that holds weight even in the most unstable of markets.
The researcher, who is also the founder of a cryptocurrency research facility called Quantum Economics, wrote,
Iranian market in and of itself is likely too small and slow to have caused this move single-handedly. More likely, one or several players have been waiting on the site for a good buying opportunity below $7,000 per coin, and it seems one has presented itself.