BTC / USD
Pairing the Bitcoin (BTC) against the US dollar (USD) during the American Presidential transition has the possibility of seeing the Bitcoin continue to steadily realize gains against the USD. The value of the Bitcoin virtual currency has recorded a three-year high. One Bitcoin is now worth about US $900. At the beginning of 2016, a single Bitcoin was only worth around US $435 but their value has climbed steadily all year.
The steady gains have continued despite hack attacks on virtual currency exchanges where coins have been stolen. Analysts have also said the rise in value can be linked to the long-term depreciation of the Chinese Yuan (CNY).
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The Chinese currency has lost about 7% in value so far this year. An interesting fact to note is that the majority of Bitcoin currency trading takes place in China. The reason for this is that buying Bitcoins allows Chinese citizens to skirt restrictive local laws that limit how much money Chinese people can swap.
Charles Hayter, founder of the Cryptocompare website that watches virtual currencies, says political uncertainty globally and India's moves to control paper currency were also driving people to buy Bitcoins.
If the trend continues, he added, many more people may be attracted to buy Bitcoins because they could be seen as a "flight to safety". Hackers have also been attracted by the rising value of the virtual coins. In August Hong Kong-based digital currency exchange Bitfinex suffered a major hack attack in which bitcoins worth US $65m were allegedly stolen.
At that time, the Bitcoin value lost about 10% when the news of the hack attack became public.
The virtual currency has yet to regain the heights it managed in late 2013 when each coin was worth more than US $1,000. The total value of all bitcoins in circulation has now surpassed US $14 billion. Bitcoins will remain on our radar as we continue to monitor its movements.