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Bitcoin’s Price Rises to Its Highest Level Since 2014

December 2, 2016 at 16:29 by Yahia Barakah

Bitcoin is on the rise again, moving past its previous high in 2016 to set a stronger value for its best price in the year at a level that was not seen since 2014. The price of the currency has been rising for most of 2016, helped by bigger worldwide adoption and new innovations in the currency’s blockchain network.

Even though it broke through the $750 mark for multiple times in the past weeks, the digital currency fell back down every time amid lukewarm trading volumes as the price failed to pass $755. However, Bitcoin managed to stay higher over the past days as the virtual currency seems to have strengthened its hold above that level.

This comes as a number of centralized currencies came under pressure, including Great Britain’s pound, India’s rupee, and China’s yuan. More people turned to Bitcoin as a safe haven for their funds as the values of these currencies dropped lower due to recent events.

In India, a premium is added to Bitcoin’s price as demand for the digital currency surged following recent currency issues in the country, including a ban of the 500 and 1,000 rupees banknotes. The Indian government seem to be encouraging people to use digital payments as the currency’s problems might last for long.

Meanwhile, increasing worries in the UK that Brexit could severely damage the nation’s economy pushed the pound lower. Investors looking to keep the value of their capital unharmed tend to choose safe havens like the Japanese yen or Bitcoin as their choice of security.

Back in Asia, China’s yuan has been suffering from a flood of devaluations from the People’s Bank of China, which brought the Chinese currency to its lowest level since 2008. Worried investors are seeking assets that can avoid capital control laws within the nation, which greatly limits the movement of funds outside China. One of their few options is Bitcoin, which offers a decentralized system of moving capital.

BTC/USD rose to 768.58 at 16:11 GMT, after touching 777.99 at 15:26 GMT, its highest level since 2014. The pair started trading today at 751.55.

If you have any questions and comments on bitcoin today, use the form below to reply.

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