Reporting from Forbes, Bitcoin, Ethereum, XRP Ripple, and Litecoin suddenly skyrocketed this weekend. The price of the biggest crypto currency based on market capitalization, Bitcoin, broke the psychological limit of US $ 10,000 per bitcoin to the highest level of US $ 11,200 on the Bitstamp exchange based in Luxembourg. Ethereum, XRP Ripple, and Litecoin all get double-digit profits, meanwhile, this sudden, higher boost causes many people to remember the great Bitcoin, when this crypto currency is a bull run in late 2017 with prices rising from US $ 10,000 to almost US $ 20,000 per coin in less than 20 days.
Bitcoin analysts and crypto currencies have been carefully searching for the cause of this sudden surge in prices, which added about US $ 30 billion to the total value of the world crypto currency in just two days. Facebook's potential rival Libra for Bitcoin and the plan to buy Bitcoin next year are two events that are usually called potential catalysts. The surge in Bitcoin prices was led by India, with Bitcoin trading at a premium of US $ 500 in some local exchanges remaining because the government cracked down on internet services such as the Telegram messaging app and Reddit news aggregator. Earlier this month, the Indian government panel reportedly recommended banning Bitcoin, which was labeled as a Ponzi scheme, and a total ban on the sale, purchase and issuance of the crypto currency in the country.
Efforts to ban Bitcoin and cryptocurrency and decentralized internet services that are naturally resistant to censorship, can have Streisand effects, which prove their needs and make people more aware of their existence. Bitcoin demand in India has increased steadily this year, according to Coin Dance data on bitcoin trading services, LocalBitcoins. Although the Indian government panel recommends banning Bitcoin, some people in the country are skeptical about its application, pointing to previous recommendations that were never implemented. However, India, under prime minister Narendra Modi has an unconventional approach to monetary policy. The Indian government plunged the country into chaos in 2016 by suddenly banning some high-value banknotes.
Some also think that the crypto currency planned by Facebook has given legitimacy to Bitcoin and other decentralized crypto currencies, making it more difficult for India to justify a total ban. "The panel's report strengthened before Facebook announced its plan. The technology giants that launch similar currencies provide a kind of legitimacy, "said Nischal Shetty, Chief Executive of India's digital currency exchange WaxirX, to the Quartz news business channel. "If Facebook will make this (crypto currency), then other technology companies might follow it. "It is hard to believe the government will say that such large companies are also included in the Ponzi scheme," Shetty said further.
Meanwhile, analysts and trade experts believe that the Libra Facebook crypto currency can give Bitcoin a further boost and potentially push it back into great times at the end of 2017. "Bull investors believe if Facebook's Libra crypto becomes a trusted payment mechanism then people are also more "It tends to trust Bitcoin as a reliable long-term store of value, digital gold," said Glen Goodman, author of the book suggesting bitcoin trading and crypto currency, Crypto Trader. "Many traders will seek to profit from the table now, but keep in mind that the last bitcoin price broke through US $ 10,000 then reached historic highs with a value of almost $ 20,000 in just 16 days," Goodman said.