Bitcoin Forum

What is the Reason for increase of the Bitcoin?

What do you mean?

If you ask how BTC is generated, it's done through a process called "mining".

If you ask why people use it, it's probably because it has something to do with the next gen of value transfer: rocks--> pretty rocks --> paper --> credit cards --> Bitcoin (blockchain technology)

If you ask why the price is higher ... likely tied to electricity costs of securing the network through mining, but it'd be a better question for Tone Veyes on YouTube.  

Less supply more in demand a simple rule always works. Bitcoin is no different. It got a boost in the arm, when Japan legalized the use of Bitcoin in its currencies, and there are rumors that it may be accepted in the Olympics (not sure as there no official word on this). Plus many people now are part of it, rather than before, banks are allowing it (restricted banks). Over all the consumption has tripled and that's also another boost for Bitcoins. Read the economics board, for more detailed information.


Did you read what he asked, what you have written and what he has asked two different things.

Increase of BITCOIN or  Bitcoin RATE?

Be clear in your question!

I think the reason of the price increase for bitcoin is the good news in the internet that discuss the good movements of bitcoin for being embraced in the other part of the world and also being used probably as a new currency.

He is asking, how big is the madness to buy BTC right now.

Bitfinex's USD issues and the Chinese market closures have distorted the functional ones badly. I think that's probably the major factor for the rise beyond $1200. It's possible that by the time those issues have been resolved the price will be new normal but I wouldn't bet on that.

The increase of the Bitcoin is bigly!

I totally forgot about the Bitfinex withdrawal issue. Maybe is not been talked around since.

If the OP is asking the reason for the increase of price of bitcoin. The simple answer is more is demanding to have a bitcoin now but the supply of bitcoin is less. We have now a country, that is Japan, backing up the bitcoin ecosystem and they are now the no. 1 country in terms of trading bitcoin volume. And there are a lot of countries that are now interested in bitcoin as well. So currently, the demand is so high right now, but we can only supply a little. Pushing bitcoin price to new horizon.

It is simple, the reason for an increase in the price of Bitcoin is due to adoption that brings in demands for the coin.  The increase started when Japan announced Bitcoin as money and started a friendly action towards bitcoin enthusiast by removing the consumption tax.  This boost bitcoin demand from people of Japan.  Aside from that, there are also several major companies that are willing to join the Bitcoin economy bringing in fresh funds.

I think the main reason behind that increase is the Japan approval of the coin for using it for the country as after that event I am seeing the news of bitcoin on more places and after hearing about that event anyone will believe on bitcoin that yes it is a really trusted currency.

I agree.  I believe we are moving from innovators into the early adopters phase.  It is also more difficult to mine and with a 10% increase in difficulty coming online soon, miners are reluctant to sell because it's only going to get more and more difficult, especially once AMD enters the ASIC space.

That is also one of the reasons for the price rise IMO, the miners being reluctant to sell makes supply lesser compared with the supply we have before we have seen the price upward movement. Without Japan adopting bitcoin, I guess miners would not hesitate to sell so Japan made a big role on the current price movement we are seeing. I hope this continues for a week or months more from now.

The reason for increasing of the bitcoin is the adoption of the people to use it in everyday living. If the countries embrace it with no hesitation? The growth of bitcoin will be better and better. It gain more popularity that crypto world wants. With that, it's not hard for bitcoin to embraced it with the other countries.

Well it is due to the more demand less supply and that has lead to the price hike in bitcoins.If you have seen the bitcoin exchanges in india,the selling price of bitcoins has increased more than 2200$,which is more than the current international bitcoin value.

I think this is because a lot of ICO, we must remember that when ICO new coins of course they use bitcoin for promotion (paying or receive), so they will buy bitcoin and eventually the price will increasing.

I think the increase of the bitcoin because all users buy and hold much. This is because all users of bitcoin is convinced that prices will continue to rise and making bitcoin as long-term investments.

When people buy and hold, the circulation and the inflow of bitcoin will decrease causing a stabilty in the price move. At present price is moving with good forward phase, which is because of the large scale investment that are coming into bitcoin through mass adoption as well through several blockchain based projects. Same time the altcoins too are with good strength making lot challenges to the bitcoin makes it grow competing.

It's because mainstream users are coming in, thanks to articles like the following:

http://www.cnbc.com/2017/05/18/looking-for-portfolio-protection-here-are-two-things-to-buy-right-now.html

As adoption increases and mining limit decreases, bitcoin price will be increases automatically. Previously, ou could find many reply due to supply and demand of  bitcoin.
Now Segwit also seems active on litecoin and Bitcoin unlimited also takes the bitcoin value up in the chart.

Steady increase in demand and limited fixed supply of 21 million coins.
Japan accepting bitcoin as legal payment.
People all over the world getting aware of bitcoin's potential.
New companies starting to accept bitcoin as payment.

All of the above mentioned is absolutely defining a success of bitcoin now and it became a historical era of digital currency now at $2000. Those reasons of significant increase in demand in the market which people were getting aware of bitcoin bey means of social media campaigns that promotes bitcoin, and gladly Japan has already adopting it because of it's higher advantage. If more and more companies will adopt this kind of currency, it's no wonder btc price will surely reach at $4000 or higher.

The reason why bitcoin increase? I think there are just 21 million bitcoins, there is no way that bitcoin will increase, it is sticked there. The question is a bit confusing, but if you are asking about the price, I think maybe because of the user and the demand, as we usually say, the higher the demand, the higher the price.

Almost all answer here are the same well japan was the best reason i think that is why the price of bitcoin was increase but I think this is not the only reason that is why the price of bitcoin was increase i think the other help of the price increase many people are investing and more company are opening that accepting bitcoin as payment..

I guess it because japan has the market of the plus 15 percent of bitcoin price and yes there are good in market also where they are using bitcoin for there business or for personal purposes they are the one reason why bitcoin price is increasing meaning they are stocking coins.

If you are talking about the increase in the value right now, there are many reasons behind it because of the many people that are using bitcoin right now because of each and everyone of us to influence them maybe because of the price of bitcoin, or the security and convenient transaction it has that is why many are using bitcoin, second is some countries are accepting bitcoin right now to doubt turn to trust these countries are a big help with the price right now, and lastly banks are the number one enemies of bitcoin they really want to banned bitcoin for good, but there are banks that are pretty much accepting it right now and have gain transaction partners to help people with bitcoin in many ways!

not only japan also australia and more countries which also got some knowledge about bitcoin, making it mainstream really gives bitcoin
a huge value and i'm looking forward that it will continue to rise up even there's some issue with slow transaction.

There has definitely been an influx of new buyers. See

https://www.bitstamp.net/article/increased-demand/


All the exchanges are experiencing something similar - this is new money coming into crypto.

This is due to the very high demand of bitcoin in the market with respect to the supply available. I believed that this event was greatly influenced by the announcement of Japan that they will accept bitcoin as a mode of payment and this was last April 2017. Followed by Russia, then the most current is the announcement of Australia. Announcing such acceptance surely brings huge number of new users, thus, increasing the demand for bitcoin tremendously.

I agree there is no doubt that these countries you stated are aggressively buying bitcoin.  Well, we can not blame them since several major companies stated that bitcoin is the current "hot money" meaning, there is a huge potential of profit gain when they involve in bitcoin.  Aside from that South Korea also pushes bitcoin price to $2350.  This means South Korea are taking part for bitcoin price increase.

Most of the reasons are here to increase the bitcoin price. But in my view, people are demanding more bitcoins, and in all over the world market bitcoins supply is short. I think it is main reason otherwise some people said mostly different countries accept the bitcoin as a currency and they demand it more, that's why bitcoin price going to high. But i think we should feel enjoy and gain profit from our bitcoins.

Yes demands, it is just like the other users answers.
We are growing in number of people who want a part of bitcoin so the supplies will get low anf that means value again.
Any item that is being bought more will skyrocket in price since it is popular.
Look for any rear item out there which many collector would want to get their hands on it. When it goes out its price is more than an ounce of gold. I am sure of that.

Bitcoin isn't increasing. There are still only 100,000,000 satoshis in each bitcoin.

The reason Bitcoin's price is increasing is the law of supply and demand.

There is a fixed supply of new bitcoins and an ever-increasing demand due to global adoption.

I think here only two reasons due to that the Bitcoin is in trending in many places ( offline as well as in online ) .
First reason is that announcement of the legalisation of the Bitcoin in Japan and that results into the numbers of the exchange sites and services with the Bitcoin related .
Second reason is of the news about the legalisation of the Bitcoin in India , The government of India is looking to legalisation the Bitcoin or they can ban it , but due to the example of the Bitcoin legalese declared in Japan , people expects that 99% chance is to legalise , so more and.more people are buying , so that they can make profit after the increase in the price after the legalisation of the Bitcoin in India .
Here is myself bought 0.1btc and hoping that will make profit into double ;)

A mixture of fundamentals and speculation. More and more people are starting to use bitcoin and its getting lots of media attention. This has led speculators to pump it more than usual, however the trend is still clearly up as it starts to gain mass adoption.

I think people have finally woken up to the fact that blocks now have BTC 25 instead of BTC 50 (or BTC 100 before that) and the golden days of mining cheaply are long gone.

I think also that this are the reason why bitcoins price is still increasing. People are now getting aware about bitcoin and they use it on their daily transaction that causing of increasing of demand. Yet, Japan are now accepting bitcoin so that new companies are accept bitcoin as payment.

to me i think there are so many reason for increase in the price of bitcoin i think in present time the increase in the price of bitcoin is only because of the Japan decision about bitcoin. which really make bitcoin as skyrocket. and the second is that the confident of the people is also increasing and therefore they are purchasing bitcoin more, which is causing the increase in the demand of bitcoin, which is in turn increasing the price of bitcoin.

So you like big and huge things? :)  8)  8)  ;)
Why are you mad if price is rising?
If you weren't able to get some when it was cheap and now eating yourself up don't worry soon it will correct a bit we just need for the weakest hands to shake a bit to drop them. not only Bitcoin but %60 of all the crypto is experiencing such a great mooning.

It looks like you have waken from a long coma because the rewards for blocks are presently set a 12.5 bitcoins and not 25 bitcoin,hope you are unaware of the developments for the past seven months or so,if you have invested heavily into mining ,they are making a good profit because the price has doubled in the past few months.

I guess the addition of the investor, and the transaction makes the bitcoin price to rise. Well, it could be when very many big investors buy bitcoin in large quantities, making a lot of people vying to sell their very large bitcoin. I guess it could raise the statistics of bitcoin prices.

It is an important part of the current bitcoin price increase. The growth of investors and also the official use of bitcoin and the increasing number of bitcoin users are most influential. If there is no element of this then certainly bitcoin will not have the existing power as it is today.

No actually there has never been a 100 Bitcoin block reward ever, what did you think before that was 150 and before that 200? at the fucking least

Read a wiki about the whole concept and it's basics. However even if the reward was 100 coins right now still demand would be much higher, there is at

least 200 times more demand than what miners are mining daily. It's OK though if you didn't know and now that you do read a bit more than posting.

So stating such an obvious facts is the new way to cover up shitposting?
Like when a baby is born he/she needs to be fed with milk, or we need to eat food otherwise we die after a few days.

There are many reasons for increase of bitcoin,it may be because of mining or because of ransomware attack as well, normally price of bitcoin rises because of mining, but in this case it might be ransomware attack for the cause because the person's  whose  computer has been attacked to get his files back he has to pay the ransomware attacker in bitcoin and in return the person will get a key to get his files back.

Recently bitcoin became a popular news through the different issues that arose and made the entire population to look at it. This increased the usage of bitcoin to much higher level. Large scale mining farm generation with energy efficient power generation too is a reason for the same.

Back in the old days that bitcoin is not popular there are merely few users so how does bitcoin really sprung it's value like this? and the popularity of bitcoin is just recently happening now well back then Satoshi made a campaign and let other people know how bitcoin works well there are many who rejects him and we can say that the start of bitcoin is through bitcoin mining and satoshi is the only one doing it, that is why he introduce it, and that is the time where many users are already doing the mining thing and no other ways in earning bitcoin but just the means of mining with just your PC, then mining RIG was introduce to further level up the mining of bitcoin and so on and so fort. I think you need to read the history of bitcoin, and how it became so popular right now.

Who knows i dont know.

yes that is right, on one side the users of bitcoin are increasing from time to time and on other time people are becoming more and more confident and they are really increasing the demand of bitcoin which is ultimately causing the increase in the price of bitcoin. i think there are so many other reasons which are also causing the increase in the price of bitcoin.

Looks like the price today is ok again back to high price gradually.. and i think that is why we seen large drop few days ago because of whales trying to drop few  price of bitcoin just to control the demand of bitcoin but i think they are fail even some people are panic to sell that push the price below $2k value and i think right now many people are still investing to increase back the value of bitcoin..

Of course, it is clear that many people took advantage of the sharp drop we saw recently to buy more coins and push the price back to $2,200, although this does not explain the meteoric rise that sent the price to touch its historic record last week.

To be honest, I expect this impressive rally has come to an end to resume the gradual and steady, albeit slow, growth we witnessed throughout the second half of last year.

i think the increase and decrease of the price of bitcoin may also be depending on mining, but it is mainly depending on demand and supply. if the demand of bitcoin is increasing, then supply interrupt and thus the price of bitcoin start increasing, but on other side if the demand of bitcoin is decreasing then mining will continue which will increase the number of bitcoin in the market and therefore the price of bitcoin will also start decreasing.

There are lots of geo political reasons for increase in price of bitcoin.Main reason is mass adoption of bitcoins taking place all over the world.Japan accepting bitcoin legally is also a main reason.Australia announcing the end of double taxation from july 1st,China and Russia starting to regulate bitcoins instead of banning might be the other reasons.People from countries suffering from economic crisis find bitcoins as their only hope to invest.More companies are coming forward to provide their services accepting bitcoin payment.Such reasons have created a combined impact on the price of bitcoin.

So many people want in because they see that price and go oh shit man this is where its at, then there are some who are dedicated and I mean committed to mining because its making them a lot of money.
The main reason though is big money entering into the game and increasing altcoin interest and government usage and attention only a matter of time now the currency is young but it is thriving.

The reasons of increase of bitcoin price for now is the rise in demand and also there is bigger whales who had joined the invesrments putting up their money on bitcoin. More or them were seing the future of bitcoin depends on the consumers adoption of bitcoin to their life, and the profit that is now highly profitable to all of us who find fianancial sustainability from digital currency. So we can really move fast by spreading what's better about bitcoin and don't hesistate to trust bitcoin on how it can do impossible things.

Basically the reason of it is the demand and surely majority of people will tell that since bitcoins is digital asset remember? The more people who wants to buy the more price will start to hike and for this current event of massive adoption surely we can see more price hike unto it since majority of people will see bitcoins are good investment and that could be the best for hodlers to earn more on this.

Probably rise in bitcoin prices is influenced by many factors, and especially probably because of inclusion of large investors investing in bitcoin so that this will lead to a rise in bitcoin prices. With current rise in bitcoin prices, it certainly has a good impact on bitcoin users in different countries.

Actually there has been lots of interest for that way back then, it's just now that it's becoming realized, and that we can attribute to the constant increase in price. Although, the catalyst to this skyrocketing valuation? That I don't know exactly.

I should say it is a luck. Many investors will invest if bitcoin has proven a lot therefore,the bitcoin increases. Others may put down the name of bitcoin because they haven't experienced yet the benefit of being a bitcoin member but once they experience it, for sure they will slap their faces that it is genuine. Though you have to wait the increasing point because it isn't stable at times but then it is paid of once you achieved its challenge to wait. Patience is truly a virtue.

The reason of bitcoins price increase is basically just because of the simple understanding of supply and demand. Thats the main reason, bitcoins supply has a limit of 21 million and there are already 16M in the rotation so as we reach the limit, the demand gets higher while supply is becoming low that makes the price pump.

Are you asking about the reason why bitcoin is increasing in price? or popularity? If bitcoin was invested and used by many people, the price of bitcoin increases, that is demand. If many of these investors and users sold their bitcoin, it will be ending in a dump, it may not be a big dump but it will decrease the price. Also if many users use to pay or transfer bitcoin everyday, it will also make it pump.

It's not luck. It's called speculation. I agree though that it's probably not because bitcoin has suddenly having a surge of new users but rather existing investors buying more and more of it to pump the price per bitcoin up.


Agreed. Price of bitcoin in the long run thereotically will always be bullish because of this reason. There will only be this much bitcoin in existance but there is an infinite amount of fiat currency that can be printed. Therefore, bitcoin is a good "store of value". But this isn't the reason why bitcoin is up in the short term, short term is always about hype and media.

Main reason is because whales want to get into bitcoin. Capital controls are tight in certain countries like China and Korea and therefore people are prepared to take a risk in assets that allow them to get away from government agencies that constantly monitor their wealth. I disagree with people who say that it's just hype and speculation. I believe that it's actually people discovering that bitcoin is a good way to store their wealth, and actually buying into it.

Proof? Korean and Chinese btc prices are always on top of the USD price because of tight money controls. I know that the korean markets have slowed down but if you look on localbitcoins the chinese buyers/sellers still trade at a high premium of 10% at least. And the USD rate is a bit lagged imo so it'll follow the trend of these exchanges. I'm not saying that none of this is speculation, probably a lot of it is. But it's not all speculation either.

Not clear you are asking about the amount of bitcoins in the market or the price ?

If you are asking about the amount then it will increase as more and more people will be mining coins. If you are asking about the price, its the demand supply ratio. The more demand something has, the more it's price will be.

yes you are right the increase of the amount of bitcoin in market is dependent on the number of miners as greater the number of miners so greater will be the amount of bitcoin in market however the price of bitcoin is depend on the numbers of users of bitcoin because when the users of bitcoin are greater then the demand of bitcoin will be increase which inturn increase the price of bitcoin and the investors are also the reason of increase in bitcoin price.

What do you mean by number of miners?

The amount or price in bitcoin depends on the demand of users. Miners produced bitcoin but without demand of it, then there will be no increase in it's price. You just almost stated it. Maybe you are talking with the quantity of bitcoin but still like we said, no demand, no price increase, no hype, no investors .

Demand is the main factor why price increase. News and speculation are some of the examples who are making those demands since speculations will revolved around it.