When this article was written (February 21, 2018), the price of 1 Bitcoin has penetrated 158 million rupiah. It has been more than 2 months Bitcoin's price has continued to rise and fall significantly. Experienced investors are difficult to predict the extent to which growth will continue. What exactly is going on in the Bitcoin market? Let us analyze more deeply.
In accordance with the economic principle, when a cryptocurrency rises in price, it means the quantity of demand for cryptocurrency is greater than the supply. Throughout the year 2017 Bitcoin prices have risen more than 700% which means there is a huge demand surge on Bitcoin. Here are some of the reasons underlying the rapid growth of Bitcoin demand:
Investors are increasingly believing in cryptocurrency. The trigger is the legality of cryptocurrency by some major countries in the world. The development of cryptocurrency technology and the stability of some of the major cryptocurrency rates have contributed to this confidence. Rejection in some countries, including in China, has not succeeded in shedding investor confidence.
The disclosure of global banking customer data in many countries is estimated to be the cause of the increasing flow of funds coming into the cryptocurrency market.
Government regulation allowing the authorities to open a person's banking data (for reasons preventing money laundering or tax evasion), really makes the customers feel uncomfortable. It is like installing a cctv inside the house and the government can see your daily activities. So now many people are starting to reduce the amount of deposits in the bank and divert it to other places, including cryptocurrency market that has an anonymous nature.
Nowadays there is a tendency for investors to hold Bitcoin at their disposal despite high profit. This is due to the emergence of issues of hard fork for Bitcoin network. When hard forks occur on Bitcoin networks, Bitcoin owners will get a new type of cryptocurrency (usually) in the same amount. So if when hard fork happens you have 2 BTC then you will get new cryptocurrency as much as 2 units also. The success of some hard forks on the Bitcoin network (Bitcoin Cash and Bitcoin Gold) inspired new cryptocurrency developers to re-perform similar hard fork techniques. So investors get a double advantage, from Bitcoin itself and from the newly acquired free cryptocurrency.