Bitcoin neared a 16-month high on 24th June as it continued to post significant gains. A lot has been speculated about the impressive rally posted by the king coin. Facebook’s ambitious cryptocurrency and blockchain project may have prompted Bitcoin’s price to surge higher. However, it is not the sole reason for the pump, and neither will it result in another Bitcoin bubble, according to Nisa Amoils, New York Angels venture capitalist, said in a recent edition of Bloomberg Technology.
As depicted by the following 1-day chart, Bitcoin was still surging, albeit gradually, after the short-lived but overwhelming rally in May.
While discussing Bitcoin’s impact on the cryptocurrency space, Amoils explained that Bitcoin’s “unique characteristics” as a store of value and as a payment mechanism has helped it evolve after the last bubble. Thousands of merchants have added Bitcoin as one of their payment modes and the number of applications built on top of it have also increased. Some of the prominent names that have Bitcoin as an option are Expedia, Microsoft, and Whole Foods.
The VC added,
“.. the unique characteristics of Bitcoin as well as the institutional build-out that’s occurred since the last bubble in terms of custody, settlements, clearing and also futures and derivatives making this more of a sustainable rally than anything else”