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Why Is Bitcoin Exchange Rate Growing?

13.12.2015 kurs-bitkoina-rastet
 
Leading financial analysts assert that the events taken place in the world in the recent months, affected strongly Bitcoin exchange rate fluctuation and, undoubtedly, are tightly interwoven with the growth of Bitcoin exchange rate. Those of you, who keep close tabs on exchange rates of e-money,  certainly paid attention that any significant event that takes place in the European Union, Asian countries and America, leads to the inevitable change in crypto-rates.
No one expert is able to assert what has served a good turn to millions of cryptocurrency holders (daily they earn significant amounts due to the continuously growing rate); however, there is plenty of guess-work. Some analysts believe that adventurous stock-jobbers just play in the market, adjusting ups and downs in Bitcoin exchange rate to much talked-of events. The purpose is to let Bitcoin investors earn money “from the air”. Other experts consider increase in the rate as one more trick to attract more and more participants to the Bitcoin-pyramid. Is there an unambiguous answer what system or mechanisms allow precise forecasting of market fluctuations? Who is the true manipulator of the Bitcoin market? In this article we will try to analyze the most popular theories concerning quick growth of the Bitcoin rate in the frame of fast-changing economical and political markets.

Version #1: Corruption therapy in China
This version looks the most convincing due to the following reasons. In 2008, after the bankruptcy of American banking holding Lehman Brothers, crisis hit the world, so in many countries, including China, state regulation has been significantly toughened. Anti-corruption drives stroke every segment of population, especially the upper crust: many public officers and heads of organizations were removed from their posts and unseated. Many dismissals took place in the financial sector: many public officers, businessmen, stock dealers, directors of Chinese investment banking institutions were arrested. Even the higher level didn’t escape: Chzhan Yun (the head of Agricultural Bank, which is one of the four largest banks in state ownership). Note, that trade based on “inside” principle is strictly penalized by the law, so Sui Sian, the manager of Shanghai company “Zexy Investment” was placed under arrest as well. The full-fledged anti-corruption campaign began in China in 2013 with the president Xi Jinping, so Chinese stock market was in decline, however, Bitcoin exchange rate climbed up.

Version #2:  Auction sale of Bitcoins
After the Bitcoin exchange rate rose yet again, mass media got filled with the name - Ulbricht U.R. Few years earlier, in the course of investigation a huge amount of cryptocoins was exempted from the mentioned above person. For this reason Ulbricht serves double life sentence in a prison, while American court bailiffs hold auction selling Bitcoins expropriated from a current prisoner. The last auction was held in the beginning of November 2015 when Bitcoins totaling to 15,000,000 USD were put up for tender.
The chances of this version are low, because previous three auctions haven’t affected Bitcoin exchange rate one way or the other (usually during such auctions Bitcoins are purchased with a price much higher than a current rate: more as an asset but not for a subsequent sale).

Version #3: The more positive news in the world, the higher the exchange rate
The first optimistic news concern recovering Chinese stock market, where the demand for cryptocurrency begins to increase. Furthermore, launching of new Bitcoin exchange Gemini contributed to the growth of the virtual currency. Popular participants in the financial market, such as Goldman Sachs and Morgan Stanley, as well as over a couple of dozens of banks finally paid attention to cryptocurrencies and began to discuss their employment on an ongoing basis.
 We can consider as good news the decision of the European Court of Justice which has confirmed that Bitcoins are not subjected to VAT; therefore cryptocurrency becomes attractive payment instrument not only for individual customers but also for large retailers - service providers.

Version #4: Again pyramid?
World mass-media with increasing frequency bind a sudden change in Bitcoin exchange rate with the activity of Sergey Mavrodi, who left the Russian Federation and spread his influence over Republic of South Africa and later – over the entire world. The greatest scope of Mavrodi’s activity fell on China: according to Financial Times, established by Mavrodi “social financial network” attracted a vast number of participants; most of them being from China.
Russian population considers this version as rather realistic because several years ago Mr. Mavrodi proved his interest and ability to deceive millions of people. However, there are no grounds to assert with certainty that previous scenario of Mavrodi’s pyramid will be repeated again, this time outside Russia. Either way, a chance of rise in the Bitcoin due to the mentioned negative experience and, as a consequence, the advent of specific déjà vu feeling remains.