Bitcoin, one of the leading cryptocurrencies, breaks all-time records in value growth for the year. In November 2017, Bitcoin easily surpassed the mark of $ 8000 for a coin, thereby justifying all the boldest predictions and expectations of the experts.

There is the growing interest in this cryptocurrency in the gambling industry as well. The leading aggregator and software provider, Slotegrator, made a research and analyzed why the Bitcoin rate is growing. In this article, we offer you to check out some conclusions.

The brief history of Bitcoin and its growth

Bitcoin came into existence in January 2009 along with the same name application. Satoshi Nakamoto, the creator of this cryptocurrency generated the first money block. The first transaction of Bitcoin between Bitcoinwallets was processed a few days after that.

Nine years ago, when its price amounted to couple of cents, nobody could even imagine that Bitcoin will cost as much as it does today.

Everything changed dramatically in 2011 after the creation of a specialized exchange – MtGox. Thanks to this platform, Bitcoin could be exchanged not only for the US dollar, but also for other currencies. Bitcoin raised and started attracting serious investors.

Everything whirled around Bitcoin. At the special conferences dedicated to the revolutionary virtual money, experts and analysts started making their first forecasts.

The cryptocurrency became more and more popular. Everyone was concerned about the question: will the Bitcoin course rise?

As a result, in spring 2013, Bitcoin reaches the mark of $100 and keeps growing. In January 2017, one Bitcoin cost $1000. By the end of November 2017, the Bitcoin course had exceeded $ 8,000 per coin.

Thanks to its fame, the Bitcoin is considered as the most popular cryptocurrency in the world. Bitcoin’s price rising is accompanied by a huge number of controversial forecasts. Some experts believe that this is a soap bubble, which will soon burst and others advise keep on buying it, predicting that in the future the cost of one coin will reach millions of dollars.

Read also: A Review on Bitcoin Cryptocurrency

What influences the cost of Bitcoin

Nowadays, many people are wondering why the Bitcoin course rises. Like any other currency, the Bitcoin price is falling and rising, depending on a variety of internal and external factors.

External factors

Among the main external factors, there is:

  • Relevance. The more companies are ready to accept payments in Bitcoins, the more competitive payment tool it becomes.
  • Opinions of authoritative people. The more well-known personalities and large companies support Bitcoin, the faster public confidence to it grows.
  • Changes in market infrastructure and regulation. Any news, like about the legalization of Bitcoin in one of the leading countries of the world, immediately reflects on its course.
  • Political reasons. They directly influence the economy, which for its part reflects on currency courses, including Bitcoin.
  • Major gamers and their activity in the market. Investors and traders understand perfectly well that they can influence the price of cryptocurrency. In most cases, interested people or so-called wildcatters can play a decisive role in the formation of the course.

Internal factors

The answer to the question "Why does Bitcoin go up?" is hidden in the currency itself and its internal factors. There is a wide range of factors, but the main are the following:

  1. Difficulties that appear during the mining of every new block. If take a closer look at this indicator and how it is changing during one month, it becomes clear that Bitcoin never stands still. Its indicators are constantly changing. The network difficulty of Bitcoin's cryptocurrency in July 2017 was 711,697,198,174, and on November 22, 2017 – 1,364,422,081,125.
    The Bitcoin network does not require additional intervention in its work, it can find the block every ten minutes. Difficulty suppresses constant growth when capacities for mining increase. This parameter is recalculated every 2016 blocks (approximately every two weeks) and can vary very much. The higher the difficulty, the lower the chances for each miner to get the Bitcoin. That is why the course of Bitcoin will grow.
  2. The deflationary nature of Bitcoin. The total number of mined coins cannot exceed the number specified by the program code. The maximum number of Bitcoins is 21 million. The last Bitcoin will be mined only in 2140. Despite the number of miners, only 12.5 BTC are mined every 10 minutes. These coins are distributed among them according to the spent computing power. Therefore, expenses for the production of Bitcoins are increasing every day, which also affects its cost.

Activity of Bitcoin in 2017

The main reasons describing the growth of Bitcoin in the second half of 2017 were precisely described by the experts of Slotegrator in the article TOP 10 reasons for Bitcoin growth in the latter part of 2017.

It is in 2017 when the popularity of Bitcoin increased greatly. The media doesn't stop discussing the Bitcoin; many countries define the laws integrating the Bitcoin currency in the economics; first ground based banks appear and the term crypto-economy is widely used in everyday speech.

We can undoubtedly say that the year 2017 is the year of Bitcoin. At first, the experts predicted the course of Bitcoin to be $5000 by the end of the year, but, already in the summer, the course had exceeded the mark of $6000. In November, Bitcoin easily surpassed the mark of $ 8000 for a coin. Therefore, today everyone who follows the financial news tries to predict the Bitcoin course. It has become the most popular activity nowadays.

Dynamics of the Bitcoin course in 2017:

Why is bitcoin going up 0

Figures as at 22 November 2017

The course of the Bitcoin grows and, as result, many people start making money on it. Someone speculates on the Bitcoin, and someone considers Bitcoin as a long-term investment.

As you can see on the diagram, in early August 2017, the cryptocurrency was forked into Bitcoin Classic and Bitcoin Cash. It happened because of disagreements about the introduction of updates, which were supposed to increase the speed of processing transactions.

Despite the drop in the rate over the past few days, Bitcoin Cash has already reached the mark of $2426. This division also affected the value of the main Bitcoin, significantly increasing its volatility.

Factors that increased the Bitcoin volatility in November 2017

Volatility is a statistical, financial indicator characterizing the change in price. It must be taken into account in the management of investment risks, as it indicates their magnitude when using certain financial instruments for a given period of time.

In November 2017, Bitcoin fell, and then raised to more than 30%. This is a very high indicator of volatility.

Let's take a closer look at the last Bitcoin raise and see what made it jump to the $8000 mark for the coin.

Dynamics of the Bitcoin course in November 2017:

Dynamics of the Bitcoin course in November 2017

Screen-shot from Forex made on 22 November 2017, 06:18 UTC

The current maximum value of Bitcoin, as seen on the chart, is $ 8127.22 per coin.

November 20, the weekend before new business week, Bitcoin briefly overcame the $8000 mark. In other words, having reached a new altitude, it almost immediately dipped below the rate. However, it still continues to be very close to it.

What are the reasons for this? Investors were biding their time. They needed to be confident that, once this mark had been overcome, there would be no response from the Fed (the US Federal Reserve System) or the ECB (the European Central Bank).

And this confidence was given to them by the failure to negotiate the formation of a governing coalition in Germany, held on last Monday. Political disagreements in Berlin reallocated attention of Europe from the Bitcoin issues. In the context of political instability, economic risks are increasing, and the ECB is busy preventing them.

Investors, after assessing the political situation, continued to tie up their money in Bitcoin, allowing the cryptocurrency to take a position above $8000.

Let’s consider what did affected the mid-November crush of Bitcoin on last week. From a maximum of $7900, it collapsed by more than 30%, demonstrating a minimum rate of $5500 per coin.

This is an artificial currency depreciation caused by investors' actions. It was triggered by the transfer of funds to Bitcoin Cash, that increased by 40% on Friday, 10 November, while on Sunday, 12 November, its value was $2426.

Thus, it is obvious that the cost of Bitcoin has been changing for a specific reason. It depends directly on many factors, the analysis of which gives a common understanding of why the cryptocurrency moves up and down.

How is the Bitcoin course funded

This is the main question that arises for those dealing with Bitcoin for the first time. If fiat currencies are backed by countries' economic performance, and the previously used gold standard, then the Bitcoin ecosystem has nothing to do with above mentioned systems, because the currency itself is decentralized. It is not tied to the economy of any country, while its price is based on the market principle of supply and demand.

There are several factors that determine the Bitcoin's reliability.

  • The process of the Bitcoin mining requires powerful and expensive computers.
  • Over time, the complexity of the Bitcoin mining has been increasing, and their maximum allowable amount is limited for now.
  • Bitcoin has reliable built-in mechanisms against counterfeiting. At least six confirmations are required to complete transactions.
  • Bitcoin is traded for real currency and has an exchange course rate.

In view of the foregoing, it is not surprising that today Bitcoin is arousing an increased interest as:

  • Investment asset;
  • Payment method and System.

The popularity of Bitcoin as a means of payment is constantly increasing. For example, Microsoft, Dell, Rakuten, Cheepair, and many others are already collaborating with this cryptocurrency. Owners of Bitcoins are increasingly confronted with the opportunity to pay for various goods with the crypto money.

There is also a reasonable growth in the number of stock exchanges working with Bitcoin. They are now more than 100. These platforms are operated by traders and investors in order to generate income from currency fluctuations.

Here are some of the most famous cryptocurrency exchanges:

  • Coinbase is a large American platform with an ever-increasing volume of bidding;
  • Kraken is an Internet site where it is possible to bid several cryptocurrencies as well as the currencies of USD, EUR and KRW;
  • Livecoin is an exchange supporting 175 trading pairs;
  • Okcoin A, BTCChina are the largest Chinese exchanges.

Risks of Investment in Bitcoin

As mentioned above, the value of cryptocurrency depends on whether people can use it to acquire goods and services. If you can buy oil, gas, wood, electricity, etc., the price of Bitcoin will grow. But today, there are not a lot of spheres accepting this type of payment. The industrial scale has not yet been achieved. Thus, the current growth is just a speculation.

A similar situation had already occurred: In the fall of 2013, after reaching the $1000 mark, Bitcoin decreased till the end of the year. In 2014, the largest Chinese crypto exchange, Mt Gox, was hacked. It accounted for almost half of the daily world turnover of Bitcoins. At that time, 650 000 coins had been lost and never returned to their owners. Mt.Gox was unable to cover the loss and was eliminated consequently. As a result of these actions of hackers, Bitcoin price dropped to $500.

Experts consider the decentralization of Bitcoin to be the second risk. As the complexity of its production grows with each passing day, the Bitcoin miners form so-called pools. However, according to experts, the Bitcoin mining will completely move to the major data processing centres (DPC).

These DPSs already exist in many countries, but most of them are based in China. It is difficult to compete with them, and the Bitcoin miners will be shortly rejecting to work with Bitcoins, which will be beneficial for those who are more capable to undertake this resource-intensive process. This will significantly reduce the decentralization of the system. So far, it's hard to tell how much this will affect the Bitcoin course that is so profitable for big investors, but this factor cannot be ignored.

In addition, there is a reason to believe that the fall of Bitcoin may be affected by technical underdevelopment. Other cryptocurrencies with more advanced protocol are likely to emerge in the near future.

Another risk of the Bitcoin funding is that all transactions made in cryptocurrency are open to public. How much money, by whom and when the Bitcoin was purchased, can be seen by all, including fraudsters. Which may pose a certain risk to investors.

Nevertheless, anonymity of the Bitcoin transactions creates certain dangers itself. Primarily, there are chances associated with criminality and money-laundering, which are very high because of the lack of state control over the turnover of the currency.

Bitcoin Forecast 2018

In conclusion, reference should be made to the opinion of financial analysts and experts in the cryptocurrency market about the future of Bitcoin. What should we expect next year? There are several opinions that deserve special attention.

  • As already mentioned, the cryptocurrency of Bitcoin was forked into Bitcoin Classic and Bitcoin Cash as early as August 2017. Developers of Bitcoin Classic do not exclude the fact that by May 2018, it will cease to exist, and the main currency will be Bitcoin Cash.
  • General forecast of most analysts suggests that the Bitcoin rate will continue to grow in 2018. Some claim that the value will be within $8,000-8,500, while others bid for course of $10000. Of course, during the next year, the cost of Bitcoin will be fluctuating: The ups and downs are expected. This is linked to all the factors overviewed in our article. But the overall trend to growth, as the experts claim, will continue.
  • The financial experts point out that in 2018, Bitcoin will remain growing and being the most popular cryptocurrency even in terms of medium-term investments.
  • Analysts involved in statistics predict that the number of users who prefer to pay for goods and services with Bitcoin will go up. And perhaps next year, their numbers will overcome the number of 100 million people, and the number of cryptocurrency transactions in the network would reach billions.


Despite the fact that Bitcoin is now one of the most risky investment assets, we cannot fail to take into account its popularity in the world. No other cryptocurrency is known so widely and has no such strong potential.

This is one of the reasons why Bitcoin has recently been actively introduced and used as a tender in online gambling. According to the analysts of Slotegrator, online casinos will be increasingly using Bitcoin regardless of the fiat money course.

Read also: Bitcoin’s dominance in online payment systems