Bitcoin experts: Two major factors are boosting the value of Bitcoin. Governments and banks are pushing Bitcoin to new heights

In addition to the global influx of new users, the war and restrictions launched by governments on Bitcoin appear to be making the cryptocurrency more resilient and unique.

From the beginning of 2017 to now, although Bitcoin has experienced several twists and turns, it has shown very strong price characteristics, which can be reflected in the rebound after the decline of Bitcoin.

Alena Vranova, co-founder of SatoshiLabs/Trezor, said:

“All these setbacks, obstacles and government restrictions are a blessing in disguise, making Bitcoin more resilient. The fact that Bitcoin hit $1,000 twice in a short period of time also reinforces its position, making expectations for Bitcoin higher this year.”

Two factors boost Bitcoin's value

BnkToTheFuture.com CEO Simon Dixon believes that Bitcoin's continued strength as a global store of value in 2017 was fueled by two major factors.

First, Dixon pointed out that in 2016, banks and financial institutions around the world were waving the blockchain flag, and some were beginning to realize that without Bitcoin’s proof of work (POW), blockchain would become quite useless.

Dixon believes that a large number of blockchain applications that do not use Bitcoin POW are even worse than existing solutions, and realizes that Bitcoin is actually the attraction of blockchain.

Second, Dixon said that governments are essentially funding the development of Bitcoin. For example, the government's war on cash and the increasing friction between Bitcoin and fiat currencies in the government's anti-money laundering war are pushing people into Bitcoin.

Dixon said:

“These two privacy factors are driving more and more people to buy Bitcoin and experience what it’s like to own your own currency.”

Bitcoin is breaking new heights

Netcoins CEO Michael Vogel believes 2017 was a breakthrough year for Bitcoin in terms of new users and continued global adoption.

Vogel said that despite the great regulatory uncertainty surrounding Bitcoin in China due to some major exchanges halting withdrawals, 2017 is proving to be a very exciting year for Bitcoin.

Vogel explained:

“From my company’s perspective, a large portion of our customer base is still new users who are just beginning to explore Bitcoin and decide to install their new Bitcoin wallet. In fact, in January this year, our virtual Bitcoin ATM traffic hit a record high.”

Vogel believes that the overall upward trend of Bitcoin is due to the influx of new users around the world. This is because despite some short-term minor problems and negative news reports, global Bitcoin trading volume continues to rise. This can be reflected in the daily trading volume over the past year.