At last, a piece of news most of us in the bitcoin community have been waiting to hear. Bitcoin is the best global currency of 2015, performing way better than the US dollar. Bitcoin has gained a lot of ground this year and it has strengthened by over 100 percent since 2014.
A recent article in CNBC, for the first time has accepted that the cryptocurrency is actually performing better than the well established global reserve currency, the US dollar. Even though not many people from the financial sector are willing to accept, bitcoin value which had dropped to about $180 from $300 earlier last year now stands at $425.
Comparing bitcoin with the US dollar, index value of the latter has increased only by 10 percent over the same period whereas bitcoin’s index value has shown a 40 percent increase and continuing its way up. Unlike US dollar, bitcoin is still on the road to recovery since the Mt Gox fiasco. So, we can expect the bitcoin index value to increase even further in the coming days.
Even though bitcoin is performing well, it still has not reached the point where it can be readily considered as a truly global currency. According to Barry Silbert, this situation will continue until bitcoin’s monetary base reaches at least $7 billion. Once it reaches the mark, it will be able to handle large volumes of cross-border fund transfers and payments.
Some of the reasons behind bitcoin’s strong bitcoin growth includes weakening of global economy, implementation of capital controls by countries like China and also increased interest in bitcoin’s underlying technology – blockchain by mainstream FinTech players. The digital currency has registered a huge growth in the past few months. It is speculated to continue through the coming year as well and it might reach $650 -$700 by the end of next year.