DURBAN - The price of Bitcoin has increased 42 percent over the last month, and 187 percent in three months. In early April it traded around R60 000 and at 09h00 this morning it was trading on the Luno platform at R174 401.
Marius Reitz, GM: Africa, Luno said, "The prices of Bitcoin and Ethereum have risen significantly since the end of March and there was another rally this weekend. Luno is more interested though, in the long-term potential of Bitcoin forming the backbone of a new international financial system which will see long term interest in the asset. The upward price is also in line with the longer-term trend. As a result of the price fluctuations, though, there is more interest. We are seeing new people buying cryptocurrency on our exchange every single day".
Bitcoin price over the past three months
There are a number of factors which are believed to have driven the price rally:
1. Facebook is launching its own cryptocurrency, Libra: there have been a number of crypto hypes over the past few years but this is most certainly not one of them. In Luno’s view, this is a game changer not just for the cryptocurrency industry, but also the broader financial system. It is linked to a basket of currencies people already trust and understand, and the issuer is associated with a major trusted global company. It mitigates volatility with a more balanced and smart issuing mechanism which is ultimately more stable, and it instils broader acceptance - should Facebook add Libra to all Facebook products, it will instantly bring billions of people closer to the crypto realm.