Bitcoin value rises to $500 in 20-month high

Cryptocurrency begins to regain value, leading to auction of 24,518 confiscated bitcoins

Bitcoin's value hit a new high on Saturday, reaching over $500 per bitcoin for the first time in 20 months.

At the time of publishing, Bitcoin was still sitting at a price of $545.65 (372.91) per bitcoin, according to CoinDesk.

While this new high has generated some excitement, it does not match the digital currency's golden days in November 2013, when the price per coin was just over $1,100.

However, Bitcoin experts believe that the currency's value will continue to climb for the foreseeable future, which could be attributed to people becoming more confident of Bitcoin's long-term value, according to Jack Liu, chief strategy officer at Chinese bitcoin exchange, OKCoin.

Advertisement
Advertisement - Article continues below
Advertisement - Article continues below

Liu believes an increase in the price of the digital currency is likely because the costs paid to bitcoin miners will decrease soon, causing fewer individuals to mine, which in turn will slow the rate at which new Bitcoins enter the market. This period of relative scarcity will then push up the value of those units already in circulation.

"Emotions have taken over: Traders have taken their rational lenses off and are buying with the expectation of selling higher in a short period of time," Petar Zivkovski of bitcoin trading network Whaleclub, told CoinDesk. "Inevitably, low-entry buyers will rush to take profit and price dumps will ensue."

In tandem with supposed user confidence growing, the digital currency has been legitimised by its acceptance from reputable banks and retailers.

Online gaming store Steam approved use of the currency of its store last month. Additionally, Bitcoin Visa card has launched in the US and the Swiss town of Zug has been trialling Bitcoin in its public services.

In related news, 24,518 (approximately 8 million) confiscated bitcoins are due to be auctioned off next month in Australia.

The coins are being held by the state of Victoria's Asset Confiscation Operations department, after being seized in 2015, when they were worth 9 million.

Advertisement - Article continues below

Ernst & Young, the auction organiser, said the bitcoins had been confiscated as proceeds of crime, but did not explain further, the BBC reports.

The organisers said they have chosen to hold the auction now as the market is currently stable. However, to prevent the auction from negatively affecting the market value of the coins, they will be sold off in sets of 2,000 (about 680,000).

The auction will be open for people to bid on worldwide, and will commence sometime in June, although no exact date has yet been given.

Featured Resources

What you need to know about migrating to SAP S/4HANA

Factors to assess how and when to begin migration

Download now

Your enterprise cloud solutions guide

Infrastructure designed to meet your company's IT needs for next-generation cloud applications

Download now

Testing for compliance just became easier

How you can use technology to ensure compliance in your organisation

Download now

Best practices for implementing security awareness training

How to develop a security awareness programme that will actually change behaviour

Download now
Advertisement

Recommended

Visit/technology/34286/us-court-orders-alleged-bitcoin-inventor-to-split-his-bitcoin-hoard
Technology

US court orders alleged Bitcoin inventor to split his hoard

28 Aug 2019
Visit/digital-currency/30249/what-is-cryptocurrency-mining
digital currency

What is cryptocurrency mining?

6 Jan 2020
Visit/security/28031/what-is-blockchain
Security

What is blockchain?

13 Sep 2019
Visit/technology/34288/pat-gelsinger-bitcoin-today-is-not-ok
Technology

Pat Gelsinger: “Bitcoin today is not OK”

28 Aug 2019

Most Popular

Visit/policy-legislation/data-governance/354496/brexit-security-talks-under-threat-after-uk-accused-of
data governance

Brexit security talks under threat after UK accused of illegally copying Schengen data

10 Jan 2020
Visit/security/cyber-security/354468/if-not-passwords-then-what
cyber security

If not passwords then what?

8 Jan 2020
Visit/policy-legislation/31772/gdpr-and-brexit-how-will-one-affect-the-other
Policy & legislation

GDPR and Brexit: How will one affect the other?

9 Jan 2020
Visit/web-browser/30394/what-is-http-error-503-and-how-do-you-fix-it
web browser

What is HTTP error 503 and how do you fix it?

7 Jan 2020