The price of bitcoin rose to another high and crossed the level of $11,700 this weekend as the currency was traded ahead of it’s hard for by the market investors. From a notable plunge of 20% last week, Bitcoin has hit the markets as a rebound on a totally new level.
This surge in the bitcoin prices comes to the traders and investors as a vision of the future when the digital currency will replace the money. The cryptocurrency is currently trading at the value near $11,725
A lot of fluctuations were seen past week in bitcoin prices as it passes over $10,000 on Tuesday and then $11,000 on Monday and then came back to $9000 thereafter.
Wild swings were seen throughout the day and up to 8% increment in the prices were noted. The recovery as speculated was quite rapid, usually faster than the normal.
The hike was being expected for quite a long time but not as early as this. According to Bitcoin Price Index (BPI) figures the digital currency has risen up to as much as $6,306.58 UTC, coin desk. Thus, according to BPI revelations, by reaching its record high level almost 550% of the initial value has been returned by Bitcoin in a year-to-date agenda.
Though many banks like central banks and asset experts have been giving fair warnings about bitcoin, still the demand of virtual currency is increasing day by day and is being used for the purchase of goods or services, making it almost a new sphere of conjecture.
Being a global asset the demand for bitcoin is going to increase even more and this digital currency sphere is going to expand furthermore, as predicted by a few analysts. Bitcoin has fluctuated quite a lot in the past year, this being one of the few highs. A total market capitalization of $100 billion was surpassed this year by bitcoin by breaking through many key price levels.
A little bit of history
Basically, bitcoin is a virtual currency, known as a cryptocurrency, which was designed as an exchange medium instead of real money and uses cryptography for its development and management. It was made as an idea to replace the real currency and take digitization to a whole new level.
It works on a peer to peer network system and was first registered under the domain name bitcoin.org in 2008 as an idea of electronic cash exchange system without depending on the trusts and central system of control.
In 2009, Bitcoin came into existence and after a struggle of almost two years for issues like blockchain system and trust complaints, in 2011 this virtual currency system started catching a new pace and many new cryptocurrencies developed on the basis of the source code of bitcoin.
It is worth making a note that bitcoin started with a price of 6 cents in 2009 i.e. almost 7 years ago and had a value of less than $1000 at the beginning of the year.
The reason behind the sudden surge and conclusions
The upcoming hard fork is being held as the major reason behind this upsurge. Several industries are planning to set up a hard fork that is going to double the size of the bitcoin from 1MB to 2MB.
And since there will be an increase in size, the proponents are claiming an increase in the network capacity of the bitcoin which is further going to increase the transaction capacity as each of the respective blocks of bitcoin is going to hold increased transactions than before.
But a few analysts are also claiming that there is going to a split in the value of bitcoin and it will have two sets of developers because of increase in size (i.e. double the initial size).
A few market and bitcoin analysts are believing that there is going to be a huge jump in the prices of Bitcoin at the end of the year 2018 and the price is eventually going to hit a value of $40,000 per coin.
Because of the recent rushes many of the investors are investing more and more into the market and making use of the virtual currency since they don’t want to miss out on gaining high profits in such a small period of time.
CNN Money concluded that a huge majority of bitcoin accounts incorporate as low as 0.1 bitcoin (i.e. holding a value of $1000 or less). And about 3% of a total of more than 20 billion bitcoin accounts have an occupancy of 1 or more than one bitcoin.
As the bitcoin value has taken such a huge plunge, other digital currencies having same source code have also surged high into the market. There has been a hike in the value of bitcoin cash as well up to nearly 13% (to $1,606.6) of the previous week’s value.
(Note: if you are thinking of investing in Bitcoin due to high upsurge in value then you might as well be prepared of losing some of your money because the values are going to fluctuate a lot)