Bitcoin, the digital currency of the future, hit another all time high on Friday, November 3rd. Bitcoin, as well as many other cryptocurrencies, seeks to become a common currency used to facilitate online transactions. There are many advantages that come with using cryptocurrency; decentralization, fast transfer, and an unalterable digital ledger to name a few. Bitcoin may also been seen as an investment opportunity with some investors seeing large percentages of gains in only a few months. According to USA Today, Bitcoin has grown an astounding 640% since the beginning of this year alone. It may seem like Bitcoin can make you rich beyond your dreams, but it could also crash to zero. This scenario is highly unlikely given that the market cap for Bitcoin has reached heights of over $124 billion USD.
Why is Bitcoin constantly reaching all time highs? Good question and there are many factors that attribute to this. A very small percentage of the population is actually invested in Bitcoin right now, so the majority of investors see this as an opportunity to get into something before it reaches mass adoption. The more money that is used to buy Bitcoin increases its market cap and subsequently raises the value over time. The most major factor that is causing recent rises in value is the upcoming Bitcoin Segwit2x fork. When a fork has occurred in the past it has rewarded investors with new cryptocurrency based on their current Bitcoin holdings. Therefore, a lot of investors are moving their money into Bitcoin before the fork happens on or around November 16, 2017. The world will be watching after this fork to see if Bitcoin can sustain its value. The outcome after this fork will certainly have long lasting effects on Bitcoin’s long term value. Whatever happens, it is an exciting time to be involved in the cryptocurrency world!
Dil Bole Oberoi
