Bitcoin, that nebulous digital currency that trades in cyberspace and is “mined” by code-cracking computers, emerged as a better bet this year than every major foreign-exchange trade, stock index and commodity contract.The electronic coin that trades and is regulated like oil and gold surged 79 percent since the start of 2016 to $778, its highest level since early 2014, data compiled by Bloomberg show.That’s four times the gains posted by Russia’s ruble and Brazil’s real, the world’s top two hard currencies.After its 2008 creation, enthusiasts hailed bitcoin as the next big thing in foreign exchange markets and an obvious monetary evolution in an increasingly digital world.But by 2014, its value tumbled 58 percent as governments cracked down on its use and a major exchange lost account-holders’ funds.There are a number of reasons the hard-to-track currency is staging a comeback now, from capital controls in places like China to isolationist rumblings in the U.K.as well as, bitcoin supporters say, increased adoption by companies and consumers.“Bitcoin is coming into its own,” says Tim Draper, a venture capitalist who’s bought thousands of bitcoins over the years.

“There are starting to be consumer uses for bitcoin, and if people have any concerns about their own fiat currency -- the rupee, for example -- they flee to bitcoin as an alternate currency.”The rationale behind bitcoin’s booms and busts can be difficult to pinpoint, but here’s what might be responsible for the cryptocurrency’s stellar surge this year:Global restrictions on sovereign currencies are playing a major role in driving increased bitcoin demand.bitcoin-qt windows 7The Chinese government, for example, made it more difficult for people to move the nation’s currency and spend it overseas, leading to trapped liquidity.ethereum miner calculatorThat’s made bitcoin, which is not controlled by any government or central bank, more attractive.Isolationist policies by some governments to restrict remittances are pushing consumers into bitcoin as well.blue bitcoin pill review

President-elect Donald Trump said during his campaign that he’d limit or halt remittances to Mexico until the Latin American nation agrees to pay for a border wall between the two countries.The explosion of bitcoin supply growth is slowing, with so-called miners getting fewer electronic coins in exchange for letting the network use their computing power.The payment to owners of the computers that verify bitcoin transactions and record them in a public ledger known as the blockchain fell by half in the middle of this year.More consumers are using bitcoins and more companies are accepting it as a means of payment.can litecoin beat bitcoinThe use of bitcoins by investors and online shoppers is growing at a steady clip, with more than 1.1 million accounts known as wallets added in the third quarter, even with the second quarter and compared with 1.2 million a year earlier, CoinDesk says.bitcoin bling

India and Venezuela banned their largest-circulating bank bills in a bid to make it harder to pay bribes and buy contraband in cash.Governments all over the world are boosting reporting standards of assets abroad and allocating more resources to figuring out how and where illegal cash moves around.It’s part of efforts to combat terrorism financing and corruption following graft scandals from Europe to Brazil.That’s boosting demand from people who want to receive and send cash without all the oversight.Going into 2017, miner Marco Krohn sees more of the same.bitcoin ticker macMany of the factors that drove bitcoin up this year will continue.“My personal expectation is that bitcoin will at least gain another 100 percent,” said Krohn, chief financial officer of Hong Kong-based Genesis Mining, which deploys server farms to mine the currency.ethereum time per block

BitcoinWhy You Shouldn’t Invest in BitcoinKerry CloseAs bitcoin prices dominate headlines, you might be wondering whether you should invest in the popular cryptocurrency.Probably not: It's just too volatile.The virtual currency is known for wild fluctuations in price.The value of one bitcoin—which was created in 2008 by an anonymous programmer or group of programmers—reached its all-time high of $1,165.89 in November 2013 before taking a major dive, according to CoinDesk data.Since then, prices have more or less inched up, and at the turn of the year, they started to approach record highs.bitcoin betting world cupOn Thursday, the value of a bitcoin reached $1,153.02.bitcoin fog timeHowever, later Thursday morning, prices suddenly fell by about $200."Liquiditydried up—no shorts, no sellers, which means a volatile little bubble formed quickly," Peter Smith, chief executive of bitcoin wallet Blockchain, told CNBC.Those sudden ups and downs would be bad news for your portfolio.

Although bitcoin had a more than 100% return on investment in 2016, it's also five times more volatile than the S&P 500, said Campbell Harvey, a professor of finance at Duke University, who described bitcoin as "an extremely risky investment."Evenif you were to buy bitcoin low and sell high, you still might not see the big payday you're hoping for."You try to sell it, and by the time the order goes through, the price may have dropped," said Matthew Elbeck, a professor of marketing at Troy University."It's really, really not worth it for the ordinary consumer."Ifyou do choose to take the plunge and buy a bitcoin, make sure it's a very small part of your diversified portfolio—and that you can afford to lose your investment."I would never recommend this on a stand-alone basis," Harvey said.Still, for some people living internationally—like Venezuelans plagued with a shortage of cash and those in China, where the government has restricted movement of capital outside of the country—bitcoin presents an attractive option to get ahold of cash, Harvey said.