The price of one bitcoin is more expensive than one ounce of gold. Bitcoin recently skyrocketed above $2,700, and it could continue to rise. Now, the recent rise in bitcoin was primarily due to ongoing changes in the industry, and companies coming together, and signing a scaling agreement. Moreover, one country, and a large online retailer are expected to accept bitcoin as a payment method, but more on that later. With these recent positive catalysts in the bitcoin industry, BTCS Inc (OTC:BTCS) shares rose over 100% in one day, and over 250% in a one-week period recently.
If you have not heard of BTCS Inc yet, it’s considered one of the early movers in the blockchain and digital currency ecosystems, and the company considers itself as the first “Pure Play” U.S. public company focused on blockchain technologies.
Let’s take a look at some industry news that may have caused BTCS Inc (OTCMKTS:BTCS) to more-than double in just one day recently. Now, bitcoin prices rose over 25% in a one-week period recently, which may have attributed to the strong rise in BTCS. Now, this was primarily due to the Digital Currency Group reached a scaling agreement at the Consensus 2017 conference in New York recently.
According to the Digital Currency Group, “We agree to immediately support the following parallel upgrades to the bitcoin protocol, which will be deployed simultaneously and based on the original Segwit2Mb proposal: activate Segregated Witness at an 80% threshold, signaling at bit 4; activate a 2 MB hard fork within six months.”
The Digital Currency Group added, “We are also committed to the research and development of technical mechanisms to improve signaling in the bitcoin community, as well as to put in place communication tools, in order to more closely coordinate with ecosystem participants in the design, integration, and deployment of safe solutions that increase bitcoin capacity.”
The Digital Currency Group of signed companies represents a critical mass of the bitcoin ecosystem, and the group currently represents:
- 56 companies located in 21 countries
- 83.28% of hashing power
- $5.1B monthly on chain transaction volume
- 20.5M bitcoin wallets
According to head of global business development at blockchain software developer ConsenSys, Andrew Keys, “I think it’s mostly to do with the fact they may have ended the ongoing political stalemate over scaling may be over.”
Additionally, one of Russia’s largest online retailers, Ulmart, recently stated that it would begin accepting bitcoin as a form of payment, even though Russia’s central bank indicated that it would be patient and wait until 2018 to consider allowing the use of bitcoin as a form of legal tender. That in mind, this could drive the demand for bitcoin, and potentially cause BTCS to rise significantly.
Not only that, but Japan announced that bitcoin would be accepted as a legal payment method, not too long ago. This was considered great news for the industry, and would increase the demand for the cryptocurrency, and potentially cause a domino effect in regulations. If more countries move to accept bitcoin and other cryptocurrencies as a legal payment method, then the prices of cryptocurrencies should skyrocket, causing bitcoin-related stocks, such as BTCS Inc to rise.