2017 will go down in history as the year of BITCOIN. Just during the past weekend, the ringleader of Cryptocurrency surges to new all-time highs of 6151 USD which turned out to be only the beginning of its road to today's 6425 USD new all-time high. Since the beginning of this year, BITCOIN has increased its value by almost 500% and it is strongly believed that there still room for growth. The subsequent wave could vault BITCOIN to 10.000 USD which would correspond to 67% additional growth and a total growth of 2000% within the last two years.

https://steemitimages.com/DQmeWm92sB9qqviMYUDXLeqj2Tvgw9K2uEnwNXGTru1mHR6/bitcoin.jpg

Which growth factors could fuel BITCOIN? It might be a mix of factual and emotional impacts.

1. Blockchain technology

The most fundamental growth factor that is responsible for BITCOINS growth is the fascinating potential provided by its blockchain technology. It grants a digital and decentralized repository that comprises all BITCOIN transactions without the need of a third party. As blockchains are open source, they are immutable and public making manipulations impossible. This unmatched security feature could make blockchain technology more applicable to transactions between private persons and companies.

2. Weakness of US Dollar

The declining US dollar provides a further reason for BITCOIN's surge as the USD/EUR pair recently dropped a new 2-year-low. A weak Dollar is boosts US exports to the delight of Donald Trump, however, it is adverse to investors that hold cash funds. Whenever the US Dollar declines, investors traditionally seeks security in gold as it is known to be a finite resource and a stable storage of value. Interestingly, same goes for BITCOIN. The protocol limits the total coin supply to 21 Million, making BITCOIN an equally finite resource. If the US Dollar remains weak, chances for BITCOIN to further increase are extraordinarily high.

3. The payment platform

Plenty of BITCOIN investors are appreciate the new Cryptocurrency payment methods. In 2014, a handful of market places started accepting BITCOIN being followed by plenty of others by now. Unless it is still impracticable to pay all expenses exclusively with BITCOIN, its acceptance constantly increases making more and more products and services accessible through BITCOIN payments.

4. Emotions and market sentiment

Emotions are possibly the most impacting growth factor and are likely to continue playing a crucial role in Cryptocurrency. If an asset increases its value by 500% within only one year and by 2000% within two years, the masses will inevitably fear to miss the boat. This especially applies to individuals and organizations that have not fully understood BITCOIN yet. Accordingly, the CEO of Fidelity Investments admitted be involved in mining BITCOIN and Ethereum, whereas Goldman Sachs thinks about providing a trading platform for Bitcoin. However, the vast majority of BITCOIN investments is conducted by small investors that are more prone to emotion-driven trades than institutional investors.

BASIC, PLAIN and SIMPLE.

Liked this article? Subscribe and upvote for more high-quality-only#CryptocurrencyNews and #TechnicalAnalysis.