Bitcoin Reaches New Record Value and Goes over $6,600
Bitcoin just hit an all-time high in value this week, peaking at 6,600 USD today after it was thought to be resting at a steady 6,170 USD on Monday.
Previously Bitcoin hit a record of USD 6,060 nine days before, but that soon fell to USD 5,374 before surprising everyone with its rise on Sunday.
It’s never easy to explain why Bitcoin is currently rising in value, some point to the recent creation of “Bitcoin Gold.” As with most forks its possible that investors and others bought ample amounts of bitcoin before the expected split then dumped it all in the aftermath.
Additionally, Bitcoin Cash which was the result of yet another fork in August increased by more than 20 percent on Sunday as well.
Mati Greenspan, an analyst with the trading platform eToro, on Wednesday said to Business Insider: "Not only is this a monumental testament to the belief in bitcoin and the demand in the market but it will also boost the liquidity by opening the market to many more interested players.”
The impending SegWit2x software update which is scheduled for November 16th might also have something to do with the windfall; it could, in fact, split bitcoin in two, creating a whole new currency once again.
Bitcoin has seen a remarkable increase in the last year along, rising by over 500% against the dollar. Mostly due to an increased awareness of bitcoin and other cryptocurrencies. In fact, 55 cryptocurrency hedge funds have cropped up this year; many focused on the bitcoin.
So far, the combined cap of all cryptocurrencies on the market is 184 billion USD.
Bitcoin is decentralized, meaning that many people make the network tick, by running its software users generally abide by the same set of rules to keep it up and running. The upcoming change, however, is causing a certain level of divisiveness.
SegWit2x plans for a specific fork or change in bitcoin rules, something that would throw out previous understandings for new ones.
Specifically, Segwit2x would change the size of the blocks regularly passed around the network and stored in the blockchain from 1 MB to 2 MB, says CoinDesk.
One difference in the new protocol is that anyone who isn’t upgraded to the new software will no longer be able to participate in the network. The two main groups opposing this change include; developers and node operators. Developers are a voluntary facet that has seen the evolution of bitcoin from the get-go, while the latter will see a rose in storage costs from the changes.
Miners, however, are all for the new era, 1Hash, Bitfury, Bitmain, Bixin, BTC.com, BTCC, BTC.Top and ViaBTC all signed the original agreement, reached in May. Despite the likelihood of this occurring on November 16th, an exact date has yet to be pinned down. This is due to the change being enacted at a certain block, namely 494,784.
Via: CoinDesk, Fortune, Business Insider.