The crypto currency had till now, never crossed the $3,000 mark, making this a record hike in its value.
Following its recent split into two separate forms of crypto currency on August 1, the value of Bitcoin had been experiencing a gradual rise, in spite of the fall in value of its newly formed counterpart, Bitcoin cash. However, on August 1, the value of Bitcoin reached an unprecedented, record breaking height of $3451.86, following a huge surge over the weekend. Till now, the crypto currency had never crossed the $3000 mark, having had the highest recorded value of $2,900 just last Friday.
The current value of the crypto currency is more than thrice the value of gold, which is generally taken as a standard unit of measurement. Its counterpart, Bitcoin cash, however, is not faring as well, having had a recorded value of $727.54 on August 2, from which, it had dropped further down, in the following days, coming up again, to $271.71 on Monday. In spite of that, the future of Bitcoin cash, however, seems quite hopeful, as it has gained the support of Coinbase, one of the leading exchange and wallet services in the world.
Reportedly, the rise in price of Bitcoin is to be attributed to the rally around it following its split. Bitcoin cash was introduced with the intention of replacing Bitcoin, however, due to the reluctance of bitcoin miners towards accepting the newly formed crypto currency, several users have been selling off their bitcoin cash, and funnelling the money into buying Bitcoin. This caused the value of the crypto currency to rise exponentially in a very short span of time.
The reason behind the poor performance of Bitcoin cash has been attributed to the lack of people’s confidence in the new currency, while several investors had also been waiting on the sidelines till the fork took place, in order to see how things went, before they joined in on the Bitcoin cash bandwagon. Founder of financial research firm Standpoint Research, Ronnie Moas, had published a report in late July predicting that the value of Bitcoin will reach as much as $5,000 in 2018, and with the current market capitalization of Bitcoin being around $56 billion, and the total market capitalization of all crypto currencies being a sum of $118 billion, it certainly seems quite plausible.
Photograph: Max Pixel