Since the start of the year, the Japanese yen has risen by about 12 percent against the dollar.The euro has fallen by about 1 percent.Then there's bitcoin, a virtual currency that doesn't even exist in the physical world.In the past few months, the value of bitcoin has risen by more than 1,000 percent — from less than $20 per bitcoin a few months ago to more than $200 today.On today's show, we ask: Is a skyrocketing value a good thing or a bad thing for bitcoin?For more, see our bitcoin stories from 2011: What Is Bitcoin?The Tuesday Podcast: Bitcoin Music: Stars' "Backlines."Find us: Twitter/ Facebook/Spotify/ Tumblr.Download the Planet Money iPhone App.by Tyler Durden Bitcoin is up almost 15% today, breaking through $2000, $2100, and now $2200.It's been quite a ride...As CryptoCompare's founder Charles Hayter notes, there are numerous drivers for this sudden surge in the virtual currency... Bitcoin is trading at a $400, or 19%, premium on Japanese Markets as Bitcoin fever takes hold.

The USD-BTC markets are trading at $2150 whilst the JPY-BTC pair is trading at the equivalent of $2550.Japanese volumes are 42-50% of trading with 132k BTC volume or c.$300 million per day.The Japanese have caught the Bitcoin bug and inefficiencies across markets are being exposed.Irrational exuberance is taking hold as the Japanese stumble over each other to enter the Bitcoin market and drag up international prices.Ethereum has seen a strong price rise on the back of the Ethereum Enterprise announcement and strong buying from Korea where the price is again at a large premium trading at $230 compared to the USD market at $180 - or 27%.The Korean market share of ethereum trading has been steadily increasing and has now reached 15%.Summary Bitcoin has hit the $2200 mark after a strong bull run with a fleshing out of the crypto ecosystem where positive regulatory moves, specifically in Japan have prompted a large inflow of fiat in the last couple of months.The Japanese have given bitcoin the greenlight as a currency and are looking to increase the rigour that their exchanges are subject too - all in all positive for the industry as it moves more mainstream.

Alongside you are seeing Chinese exchanges switching bank online after the PBoC halted withdrawals due to AML and KYC concerns in January this year.bitcoin gets nasdaq testThese exchanges have been trading at a steep discount for the past couple of months as money has essentially been trapped by the PBoC's diktats.bitcoin tax specialistInterest in other crypto currencies has also brought money to the table that ebbs and flows via bitcoin - although you are starting to see direct ethereum pairs offering immediate exposure.bitcoin virus source codeThe money is washing in and out of Bitcoin to search for extraordinary returns in the other crypto currencies.ethereum key file

Ethereum and Ripple have seen some extraordinary returns this year - and momentum begets momentum with greed taking the lead.Premia & Discounts Bitcoin trades across multiple fiat pairs in a range of local and global exchanges.bitcoin dropping redditThese pairs often trade at different prices due to fees, entrance and exit routes, and various perceptions of the safety of the exchange.definition bitcoin deutschFor example on the USD market exchanges have traded at up to a 5% or more difference.bitcoin price drop september 2011This can be exacerbated by various factors.cake codes bitcoinWhen these inefficiencies occur there are opportunities to arbitrage the difference.bitcoin ppt español

So large discrepancies or rises on one particular pair - for example the JPY BTC pair - can drag up the USD BTC pair as demand on one markets prompts opportunities on another.Charts below showing the JPY Premium over time and price differential to the USD markets.The Korean Won is also trading at a premium on the USD exchange of $2750 or a 27% premium.The Korean Won has 5% of Bitcoin trading.Ethereum is also seeing its markets dislocate as the Korean won takes a large premium.New fiat on ramps into the crypto currency are distorting market prices  but the fundamental levels of adoption and use by industry have been key in igniting price momentum.The Enterprise Ethereum Alliance has more than tripled in size, with the group announcing 86 new members, including South Korean telecom Samsung, pharmaceuticals giant Merck, automaker Toyota, investor communications platform Broadridge, financial markets firm DTCC, and the Illinois Department of Financial and Professional Regulation, which oversees licensed businesses in the state.

Additional factors include: Global Uncertainty - Bitcoin has reacted as a form of digital gold at times of international crisis and this is often touted as first major price factor.Bitcoin traditionally moves with a higher beta than gold so spikes higher to the upside - periods of high correlation for bitcoin and gold occur when global uncertainty takes the ascendancy - which at present doesn't seem to be the case.Bitcoin is defying its gold relationship and subject to its own internal machinations.Gold has traded between 1240-1280 USD /oz whilst bitcoin has doubled in the last 3 months.On a macro level Macron's success, despite the storm clouds of brexit and Trump's bellicose attitude mean doom and gloom scenarios of political polarisation are improbable but still nonetheless a risk.Scaling Debate - Litecoin has taken the lead and become the frontline in testing various augmentations for bitcoin with its segwit upgrade and early moves towards adding a lightening network for faster transactions.