The digital currency Bitcoin began the new year climbing above $ 1,000 for the first time in three years, having outperformed all currencies issued by central banks with a 125% rise in 2016. The digital currency Bitcoin which is an “internet-centric” that is not dominated by any central bank and as it totally depends on the electronic operations of thousands of computers around the world – advanced on Sunday 2.5% to $ 1,022 per unit on the European platform Bitstamp, its highest level since December 2013. Although the digital currency has historically been quite volatile, a sharp increase led it to quote above $ 1,100 in 2013 while in the past two years, it has been more stable. Its maximum intraday uncertainty in 2016 was in the range of close to 10%, which is still highly volatile against official currencies but is markedly below the 2013 movement band, with daily variations of up to 40%. The digital currency Bitcoin was boosted in the past year by an increase in demand in China, after a 7% annual decline in the value of the yuan in 2016, the weakest performance of the Asian currency in more than 20 years. However, most of the Bitcoin trading is done in China. While more than 5 Million Bitcoins were traded within 24 hours since the turn of the year, with nearly 38 Billion yen traded (~$3.2 Billion), according to Cryptocoin. Moreover, the performance of the digital currency Bitcoin is also driven by the lack of supply of cash in India, as we all know that how the Prime Minister of India Mr. Narendra Modi banned and removed all high-denomination currency notes from circulation. But, apart from all this, the digital currency Bitcoin remains the most extensively used cryptocurrency of all time, while there is some more cryptocurrency has also gained a little popularity in 2016, which includes the cryptocurrencies like Ethereum, Ripple, Litecoin, Monero, and Dash etc. Hold on; even the digital currency Bitcoin is also used to move money around the world quickly and anonymously which is not subject to the authority of any central bank or monetary entity, making it attractive to investors who wish to circumvent capital controls such as those applied by China.
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