Bitcoins and Cryptocurrencies, in general, are notorious for its fluctuation in prices. But with Bitcoin, the ranges for highs and lows are so much apart from that it is sometimes ridiculous.
In 2017, the price of one Bitcoin token rose to as much as $19200 but then took a swing downwards to a low of around $6000. But as of February 2018, it is on the rise again. The current price of Bitcoins is around $10733.
So what is causing these radical shifts in Bitcoin prices? Well here are some highlighters which should spread some light on the current trends.
The lightning Network
The Lightning Network is an open source project taken up by the Bitcoin community. It aims to create instant and free payment channels to trusted parties so that Bitcoin transactions can become even smoother. The project has long been on the blackboard and has finally hit the real world(testing phase). Also, people are showing confidence in using it with real-world transactions. Naturally, with such a powerful weapon on its side, Bitcoin prices are sure to keep a steady rise.
Segregated Witness or SegWit allows the network to process more transactions per second. The process has significantly increased the space on the blockchains which in turn has lowered the transaction fees. Now even though SegWit will not have the desired effect until wallet providers, and Bitcoin exchanges integrate the upgrade to their network, but still the existence of the network plays a huge incentive on the part of the investors.
Governments are speculating on the disruption that cryptocurrencies will have on their economy. This is enforcing some strict laws and regulations to be passed revolving around Bitcoins and Altcoins.
However, all these new regulations are calling in more media attention. This, in turn, is causing people to research cryptocurrencies themselves which in turn is creating a sense of distrust on the centrally issued money. Since Bitcoin is decentralized and backed by cutting-edge technology, people are looking at it as the currency of the future.