Bitcoins are a hot topic in the financial markets and the constant inconsistencies always keep them in the news. Bitcoin could jump to 6000$ from 4500$ by the end of the year according to the trends. There has been a 74% increase in its prices over the last three months and it truly has been an eventful year for the currency .
While September shocked the Bitcoin market with a series of declarations coming out of mainland China that hurt Bitcoin’s price, the month ended with support from Japan.
Bitflyer (Bitcoin trading platform) CEO, Kano said that there is a booming demand for bitcoin trading in Japan as well as virtual currency services. On September 29, 11 companies were approved as operators of cryptocurrency exchanges by Japan. Bitcoin regained value at 4500$ where it was, the beginning of September. South Korea banned the cryptocurrency too but it hardly had any effect on Bitcoin. Taiwan also followed on Japan’s footsteps, ignoring china and Korea’s crackdown on the cryptocurrencies.
SEBI (Securities and Exchange Board of India) announced that they are in a process of planning a framework to regulate bitcoin market in India. The chief problem is that the currency is “Non Fiat” and not regulated by an authorized body. The government has realized that the technology has the potential and is phasing out a plan but there is still a long way to go before it becomes legal as it requires absolute monitoring which was recently conveyed by SP Sharma (chief economist at the Ph.D. Chamber of Commerce and Industry) . The government is at unease with bitcoin and also came forward with a proposal to launch its own cryptocurrency (Lakshmi) as a clap back to Bitcoin which will fall under RBI’s Domain.
The Wall Street bankers are in splits regarding the cryptocurrency, with Chase CEO, JP Morgan calling it a “fraud” and some calling it “more than just a fad”. But it seems like US may allow Japans footsteps too . At an event of Federal Reserve Bank of Philadelphia, acting Comptroller of the Currency, Keith Noreika said that they are open to the idea of cryptocurrencies and might consider execution of nationwide licensing program for exchanges, which is a positive sign for the currency but it still has a long path to cover in the US.
Also there is a Bitcoin fork scare among the investors. A “fork” is an alteration to the software of the digital currency that splits it into two separate versions of the blockchain with a common history which could be temporary or permanent. These forks create uncertainty among investors. Such fork is predicted in October and one took place earlier this year which created: Bitcoin cash.
Bitcoins are a hot and trendy topic in the financial market with new announcements reeling in everyday and every hour! Who knows what future might hold for this currency!