Bitcoin Rally Continues – Price Approaching 9000 us
The best-known crypto currency Bitcoin has continued its recent high flight at the start of the week. On Monday morning, a Bitcoin was last traded on the Bitstamp trading platform at slightly more than 8700 US dollars, about seven percent higher than on Friday. Thus the Bitcoin increased the profits of the past months and rose to the highest level for a little more than a year. Since the end of 2018, the share price has risen by around 130 percent.
Despite the recent gains, the Bitcoin is still far from its December 2017 highs of almost 20,000 dollars. Because of the strong price fluctuations, experts warn again and again of the risks of the Bitcoin. The European Central Bank (ECB) points to the lack of legal protection for investors in addition to the strong price changes.
Bitcoin expert Timo Emden of Emden Research sees the comparatively low trading volume over the weekend as a possible reason for the rally at the start of the week. Sudden price premiums are then not uncommon. In addition, it could be that investors will again invest more heavily in Bitcoins around a year before the next expected shortage in production, the so-called “mining” of the crypto currency.
“Investors are currently panicking at the last minute,” wrote Emden in a short study. Reason for it is the so-called Halving . In contrast to most other crypto currencies, this was already built into the Bitcoin code with the invention ten years ago. This mechanism halves the reward for providing computing power to process and verify Bitcoin transactions at regular intervals.
This is to control the growth of the currency. Of the limited to a maximum of 21 million Bitcoins, 17.6 million have already been created through prospecting. After the next upcoming halving, which is expected for the end of May 2020, the provision of computing power will only be remunerated with 6.25 Bitcoins – instead of the current 12.5 Bitcoins. In 2009, miners still received 50 units of the crypto currency.
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