Bitcoin has been widely speculated as the next big thing in currency, or as a failed experiment that is nearing its end. However, that changed in the last few days, when it experienced a resurgence – one so strong, that it is at par with the price of gold!

For the first time, the price of bitcoin is the same as the price of gold

Bitcoin Gold | VivekShenoy.com IT & Marketing Consultant

Source: Coindesk.com

Bitcoin has experienced its ups and downs, but worryingly, a 20% fall!

Bitcoin price falls by 20pc in dramatic crash

Or, one leading bitcoin exchange, Mt Gox, losing confidence and shutting down.

The failure of Mt. Gox could be a mortal wound for bitcoin

Part of the resurgence is attributed to changing political climate worldwide. The removal of bank notes in India, and the economic turmoil in Venezuela may have driven a spike. But, whether it continues to grow, remains to be seen. Some analysts say even if it did, it won’t matter.

Why Bitcoin’s $1,000 Value Doesn’t Matter

In the grand scale of things, the contribution Bitcoin makes to the economy, is but a drop in the ocean. Further, its future could be adversely impacted by the rise of Chinese companies that seem to have taken control of the market.

How China Took Center Stage in Bitcoin’s Civil War

Through astute investments, and foresight, 70% of the transactions are now handled through four Chinese companies. With such volumes, these companies have veto rights, and alarmingly, could trigger a centralization of policies. And, this could impact the very foundation of a decentralized, independent currency.

The next year should be interesting.