The father of Bitcoin: What is $1,700? The end of Bitcoin's race is $4,000!

One year ago, Bitcoin was worth $400, and everyone was worried whether it would fall back to single digits. One month ago, Bitcoin was worth $1,145, and everyone was wondering whether it would fall further. One week ago, Bitcoin was worth $1,420, and everyone thought the rise was incredible!

Image source: eToro, data as of May 10, 2017

However, the most incredible thing is that Bitcoin "raced" at a speed of $80 a day this week to reach a historic high of $1,700.

Image source: eToro, data as of May 10, 2017

Do you think this is the end? The creator of Bitcoin, Satoshi Nakamoto, recently told a reporter from the Asahi Shimbun that Bitcoin’s goal is to reach the starry sea of ​​$4,000!

Does Bitcoin really have such confidence? Is it just a false rumor? The answer is that there have been many positive news about Bitcoin recently, which are slowly building a solid foundation for Bitcoin to take off.

The process of legalizing Bitcoin transactions begins

Since the moment Bitcoin was born, legalization of transactions has always been its dream. Although the US Securities and Exchange Commission rejected the Bitcoin ETF on March 11, 2017, Japan's Payment and Payment Amendment Act officially came into effect on April 1. The Act gives Bitcoin legal status as a payment method. In other words, the Japanese government has recognized that Bitcoin is equivalent to general goods.

Not only that, the Japanese government has also formulated a preferential policy: starting from July, consumption tax can be exempted by 8% when using Bitcoin to pay for consumption. It is expected that 260,000 retail stores will accept Bitcoin payments this summer.

Meanwhile, 18 Japanese traders have submitted applications for permission to trade bitcoins, and are eager to try their hand at the market, including financial giant SBI Group, which has established SBI Virtual Currency Co., Ltd.

If Japan has always been a die-hard fan of technology, and embracing Bitcoin is just a "first-mover advantage", then the fact that a rigorous country like Germany is considering legalizing virtual currency transactions means that it has officially started legalizing transactions. On May 3, 2017, Germany's Bild reported that the German federal government is considering using Bitcoin as a supplement to legal currency.

There is another country that must be mentioned here, that is Malta. It is more "ruthless" than Japan and Germany, and has directly raised the development of blockchain technology to the national strategic level. The world's major powers are promoting Industry 4.0, and we, a small island country, simply took a different approach: Bitcoin to revitalize the country!

In the past, Bitcoin transactions were still in a gray area. However, starting from 2017, Bitcoin transactions officially entered the 2.0 era - a new era that is regulated, safer and more transparent.

Bitcoin trading achieves technical breakthrough

Just last week, Bitcoin’s brother currency Litecoin achieved a technological breakthrough in “soft fork” - expanding the block capacity and thereby increasing the Litecoin transaction volume per single block.

The construction principles of Litecoin and Bitcoin are basically the same, and the "soft fork" technology can also be applied to Bitcoin transactions.

The so-called "soft fork" is a kind of compatibility that allows bitcoins mined by the new algorithm to be compatible with bitcoins mined by the old algorithm, thereby expanding the transaction capacity of a single block. Previously, this incompatibility in Bitcoin transactions hindered their liquidity.

Therefore, Bitcoin, which has achieved a technological breakthrough, will greatly improve its liquidity and stimulate greater transaction demand.

Therefore, Bitcoin is on its way to a new all-time high of $4,000, perhaps in the near future.

Image source: eToro, data as of May 10, 2017