Cryptocurrencies are making headlines as the bitcoin, the most popular cryptocurrency, is gaining acceptance around the world. According to Reuters, the cryptocurrency market achieved record number as the Bitcoin hit a record high of $3,041.36 on Sunday. The next day, Bitcoin saw its biggest crash in over two years and fell approximately 16 percent to $2,532.87.
Despite controversy in the past regarding black markets and money laundering, growing demand for bitcoins from Asian countries have fueled the increase in price of the bitcoin. Since Asian countries are beginning to accept and regulate the cryptocurrencies, the demand for this form of payment has blew up due to new uses that old forms of currency could not accomplish. The People’s Bank of America recently started halting withdrawals in February, but recently started allowing bitcoin exchanges to continue amongst customers.
In April, Japan was one of the first countries that accepted the cryptocurrency as a legal means of pay and have attributed to the spike in the price. Since the government fully accepts the bitcoin, Bitpoint, a bitcoin exchange, recently partnered with Japan’s Evolable Asia bringing bitcoin services to the country’s largest online travel agency and 1,4000 hotels and inns across the country. Other companies, such as Peach Aviation recently announced that they would also bring bitcoin payment and exchange service to 100,000 stores in Japan.
Furthermore, Ethereum, similar to the bitcoin, is proving that other countries are progressively incorporating this untraditional method of payment. The second largest cryptocurrency in the world only after the bitcoin, Etherum has also seen record price levels of $407.10 from $7.98. Like Bitcoins in Japan, Russian entities have agreed to use Etherum to help blockchain technology in the country. This demand comes from the recent need for investors to safely hold their assets amid geopolitical instability.