The blockchain fever is high thanks to an astronomical surge in bitcoin price. The digital currency skyrocketed to a fresh high of above $5,000 in late August from around $997 at the start of the year.
Inside The Surge
The excitement surrounding the cryptocurrency is due to the blockchain technology that backs bitcoin. The blockchain is a decentralized public ledger, which offers a secure, fast and cheaper medium of carrying out online transaction and online transfer of information without the need of third-party verification. Other cryptocurrencies such as Ethereum are also powered by the blockchain technology.
According to the Market and Markets report, business surrounding the blockchain technology is expected to grow from $210.2 million in 2016 from $2.32 billion by 2021 at a CAGR of 61.2%. The global Blockchain Technology Market’s research report projects a CAGR of 55.6% from 2017 to 2021.
Additionally, the split of the digital currency into bitcoin and bitcoin cash added to the strength last month. The action will expedite transaction time, leading to a speedy growth of the cryptocurrency.
Further, bitcoin is gradually becoming a safe-haven currency as tensions between North Korea and the United Stated as well as the Washington turmoil have spurred a rally in the digital currency. Moreover, strong demand from Japan and rising institutional investor interest are pushing up the price of bitcoin.