CNBC Analyst and Capital founder Brian Kelly attributed the recent surge of Bitcoin price to the rising demand of institution investors toward Bitcoin.An increasing number of investors and traders have begun to recognize Bitcoin as a long-term investment, store of value and settlement network, rather than as a short-term investment or “hot money,” as Kelly described.Investors looking to trade Bitcoin for Japanese yen In particular, the Japanese Bitcoin exchange market and industry have matured significantly over the past few months, to the point in which the country’s largest financial institutions and corporations have started to launch digital currency exchanges and trading platforms.SBI Group the $3 bln financial conglomerate based in Tokyo, recently established SBI Virtual Currencies, to create a secure and efficient ecosystem for investors looking to trade Bitcoin for the Japanese yen.Another multi-billion dollar Internet company in GMO Internet has also announced its plans to launch a Bitcoin exchange within this year.

A representative from SBI Group told a local publication: "We didn't even have minimum guidelines [back in 2014, when the Bitcoin exchange Mt.Gox collapsed,] so users will now feel more secure.” Major alteration in mainstream perception of Bitcoin The SBI Group representative further emphasized a major alteration in the mainstream perception of Bitcoin as a legitimate digital currency, primarily due to the Japanese government’s legalization of Bitcoin as legal tender.ethereum coin chartAlso, a large factor that has convinced institutional investors to invest in Bitcoin is the elimination of tax requirements for Bitcoin.bitcoin escrow accountCountries such as Japan and the Philippines have completely legalized Bitcoin as legal tender and are set to drop any relevant taxes for Bitcoin traders and investors.how to setup a bitcoin wallet mac

Kelly stated: "The biggest driver right now is you're starting to see institutional investors take a keen interest in the entire sector.I don't think this is hot money.This is real money that's going to sit around and build the new Internet."According to CNBC, Kelly reaffirmed that Bitcoin price strengthened over the activation of Segregated Witness (SegWit) on Litecoin and the community’s optimism toward SegWit activation on Bitcoin.bitcoin vanity poolScaling solution first, to the moon after?best linux for bitcoin walletRecently, Bitfury vice executive chairman George Kikvadze revealed that high-profile investors are delaying “massive investment” in Bitcoin and its businesses due to the digital currency’s lack of scaling solution.litecoin pool fee

Upon the activation of a scaling solution, whether that be SegWit, Bitcoin Unlimited or Extension Blocks, investors will be willing to invest in Bitcoin with flexibility and full confidence.“Just finished a two-week roadshow with investors.Message: we love Bitcoin but need to sort out scaling before we massively invest [in Bitcoin.] Activate SegWit!,” said Kikvadze.Username * First Name Last Name Email * Password * Repeat Password * You registration completed successfully.bitcoin documentary 2014Confirmation email sent to email address provided.bitcoin gpu atiEmail * Password *bitcoin forecast 2013The price of bitcoin has surged overnight, closing in on its all-time high set back in 2013.Immediately prior to reporting, global average prices had reached a high for the session of around $1,137, according to the CoinDesk Bitcoin Price Index.

Notably, that figure is less than $30 below the maximum ever value of $1,165.89 set on 30th November, 2013.The latest increase comes soon after bitcoin's longest ever period at over $1,000, and a notable period of volatility in recent months.The highs also reflect confidence by traders and investors in an industry that has been somewhat rocked by moves by the Chinese central bank to restrict the actions of the country's bitcoin exchanges, causing a number of them to temporarily freeze withdrawals of the cryptocurrency in recent weeks.Also lurking in the background, and possibly having an influence on price, is the imminent SEC decision on the Winklevoss brothers' bitcoin ETF – an event some experts have told CoinDesk that traders are already 'pricing in' a potential approval.The 11th March ruling could see the approval of the first bitcoin ETF in the US market, opening the digital currency to a wider audience of investors.However, many in the industry do not see a high likelihood of approval by the financial regulator.

For more historical data and charts, visit the CoinDesk BPI here.BitcoinBitcoin’s Wild Ride: Are Governments Fueling the Price Surge?Jeff John RobertsWhat a crazy week for bitcoin.The digital currency is famous for its volatility, but in the last few days, it soared from $2,000 to nearly $2,800.And after a $400 plunge on Thursday, it is sitting around $2,450.Oh, and if you're keeping track, bitcoin is up about 100% since the start of the month.There are various explanations for the price surge, which include: a flood of new investors from Japan and Korea; blockchain technology (which drives bitcoin) going mainstream; and, of course, speculative mania.But the most intriguing theory about the bitcoin boom involves national governments.Specifically, are central banks acquiring bitcoin to hold as reserves alongside gold and foreign currencies?Vinny Lingham, a well-known entrepreneur and digital currency enthusiast, predicted last year that a price surge could lead governments to take a strategic interest in bitcoin as an asset.RelatedFortune 500Apple’s Week Centered on Tim Cook and QualcommFortune 500Apple’s Week Centered on Tim Cook and Qualcomm"If Bitcoin started to surge globally, and as a result of strategic interests from any one government, if other governments decided to own a piece of the limited 21m coins in issue, I believe this would trigger something akin to a digital commodity race.

Imagine if China started buying up large amounts of Bitcoin — would the rest of the world governments stand idly by and watch?"he wrote in a blog post.Lingham made the point again on Twitter this week, citing a possible rivalry between Asian countries:Well, looks like Japan started - same principle applies.China will not let Japan take pole position... https://t.co/BVfwZPhSKK- Vinny Lingham (@VinnyLingham) May 25, 2017It's not clear if Lingham is being entirely serious.(A subsequent tweet hinted the Japan comment might have been in jest.)But the idea of central banks acquiring bitcoin is hardly far-fetched.The Central Bank of Barbados, for instance, published a research paper on whether the country should buy digital currency.And other CEOs have made the same suggestion:I believe some governments will start buying small amounts of bitcoin as reserves in 2017.Zero risk, all upside.@bobbyclee @barrysilbert- Bill Barhydt (@billbarhydt) January 8, 2017From a theoretical standpoint, bitcoin possesses many of the same attributes of gold, which makes it an attractive store of value for central banks.

Specifically: There's a limited supply of bitcoin, it's easy to trade, and its price is not dependent on governments or regular financial markets.Get Data Sheet, Fortune’s technology newsletter.As to whether Asian governments are actually acquiring bitcoin, there is so far no hard proof.But bitcoin investors have long looked nervously at the extensive mining operations in China, which are effectively under control of the government.The prospect of Chinese control, along with the incredible surge in bitcoin's value, is something that could spur the governments of Japan and Korea—where bitcoin is trading higher than anywhere else—to acquire the cryptic currency.Finally, some fear bitcoin is still vulnerable to a so-called 51% attack—an existential threat in which more than half of the world's bitcoin miners join forces, allowing them to manipulate the blockchain records on which all bitcoin transactions are stored.Today, such an attack is considered too big for anyone to pull off—except, perhaps, a nation state.National governments jostling for control of bitcoin could also trigger new forms of crime or economic aggression on the Internet.