Finance

Reasons for the price hike in Bitcoins

The price of bitcoins has raised nearly 200% over the last year. This type of crypto currency was created in 2009, almost 10 years have passed. During these days, it has come across numerous rejections and also experienced high volatility of bitcoin price and now it is slightly acceptable by few governments.

This digital currency was created during the financial crisis and to function against the central authority, financial institutions and banks. Many countries thought to have a control over it but have banned these bitcoins stating that they are illegal to own, but some others were taking care of them, the rest developed ways to regulate taxation and its functions.

crypto currency

Many countries are emerging in favor of crypto currency, although there is no clear position yet.

  • Bitcoins are treated as an asset and considered as one of the methods of payment in Japan yet it is treated as currency.
  • India has set up a committee to analyze the presence of these virtual currencies not only in that country but also the whole world.
  • Russia, a country which is an opponent to these electronic currencies has deviated from its path and has taken steps to legalize these bitcoins.

Therefore, these crypto currencies tend to become legal and authorized and may be these are a few reasons for the bitcoin price hike in recent years. It is also a fact that its price will still increase to a higher extent and in addition to that more people will look forward to make an investment in these digital money.