Bitcoin prices skyrocketed from the level of $4,127.2 (Day’s low on 1st April 2019) to the level of $5,079.4 (Day’s High on 2nd April), the prices are currently hovering at $4,989 after a steep rise in prices. The prices of the digital currency spiked above the level of $5,000 mark and marked an increase of approx. 17.40% on 2nd April as compared to its previous close.
However, bitcoin prices are still trading about 75% down from its all-time high of $ 19,891, which was marked by the digital currency in December 2017.
Among various factors, which supports cryptocurrencies prices, recognition of the currency and its acceptance plays pivotal roles, and in a recent event, the rising of San Juan Mercantile Bank & Trust International (SJMBT) as a provider of digital asset custody and settlement services led towards the higher recognition of the cryptocurrencies, and in turn, supported its prices.
SJMBT received all the regulatory approvals and licensing last month; the Puerto Rican based bank is all set to tap in the cryptocurrency segment and take advantage by providing services related to the new emerging and highly debatable sector.
The bank started its operations from 1st April 2019, which in turn created optimism among digital coin collectors and speculators about the security concerns of the digital assets, as the bank is providing custody and settlement services. The rise in confidence of digital currency investors about the security of the asset supported the bitcoin prices, and the prices surged above the level of $5,000.
Apart from the emergence of the SJMBT as a security provider, the appearance of CME group as a derivative product provider also led toward the higher recognition of the bitcoin along with the high liquidity, which in turn resolved the liquidity issue of the digital currencies; thus, supported its prices on the Bitfinex exchange.
A Cryptocurrency such as Bitcoin, Litecoin, Ethereum, etc. are digital asset designed to provide means for a financial transaction without any centralized body control over it and is secured by cryptography (a technique involving programming to secure transaction). The Cryptocurrency uses blockchain technology (openly distributed ledger that can record transactions) to maintain financial transactions ledgers as there is no centralized party involved in it.
The concept of cryptocurrency came to overcome the pitfall of State-Issued money such as the danger of hyperinflation which involves wealth transfer from people holding the physical currency to the institutions given the power to create new money by mean of interest change and open market operation of these institutions (Central Banks).
“Bitcoin” is an integer from 1 to 21million initially to be released in parts and consists of two related but different concepts. First bitcoins (Lowercase) is the unit of digital currency and second is Bitcoin (Uppercase) protocol that governs the decentralized network to maintain a “public ledger” (blockchain) that keeps the transparent record of every authenticated transfer of bitcoins from one party to the other. Anyone who wants to enter into this process and become part of the network must download the bitcoin software and must start in “mining” operations and help to verify the history of transactions.
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