During the last month a fallen angel has started to rise again: Bitcoin.
What actually is the fuel behind the move?
As usual with Bitcoin, nobody knows for sure. One month ago the Bitcoin exchange Gemini of the Winklevoss twins came alive. Perhaps this is seen by the market as a precursor of their planned ETF.
For now trading volume of Gemini keeps rising, but is still far behind its bigger competitors. But if the ETF finally should get born, it would likely be a strong driver that could catapult Bitcoin far beyond its all time high of a bit more than $1K.
An alternative explanation for the rise could be the ruling of the ECJ on Oct. 22 that Bitcoin purchases and sales are exempt from VAT. That doesn’t levitate Bitcoin to a legal tender, but acknowledges Bitcoin as a form of money, at least with regard to VAT.
However, some EU countries have different opinions. Estonia decided that the full transaction amount of BTC exchanges with real currencies have to be taxed, back in December last year.
Overseas are even more views on Bitcoin’s status observable. Some states forbid cryptocurrencies outright, like Russia.
Really interesting is Japan’s idea that, in Japan, no one can own Bitcoins. That means you are allowed to have them, but you have no ownership of them. The conclusion is, they can’t be stolen from you and you can’t demand them back in case they “vanished”.
Abracadabra, problem Mt Gox solved…
But for trading purposes is such a strange thing like BTC perfect. It has no real value, or, at least nobody knows it if it exists. There is no barrier, no ceiling for any rise. In other words, the sky is the limit.
That is exactly the right turf for a Zen trader…
Instead of putting your money into the next imploding Mt Gox, trading could be done conveniently by using an efficiency oriented broker like Kraken.