Bitcoin’s value increased to $3400, an all-time high to date, in just three days. The surge clearly indicates that many people have faith in the idea of digital currency.
With this increase, compared to brief hikes in the past, the digital currency has an upward journey of 18% in the month of August and has grown three times over throughout 2017.
Ronnie Moas, founder of Standpoint Research, a financial research organization, said the one thing that is keeping the currency moving forward is the confidence that traders have on it. The moment there is a dent in confidence, they will begin selling and it will put the currency on a slippery slope.
Moas, a big investor in digital currencies, had predicted earlier that the value of bitcoin would reach $5000, and it seems to be on course to do that. The market capitalization of bitcoin is $56 billion. For the sake of comparison, General Motors has a market capitalization of $51 billion.
Analysts indicated the price hike is due to the correction rally after the split of bitcoin currency and bitcoin cash. Many investors waited for the split so they could invest in the currency and the cash component. The combination of Bitcoin cash and Bitcoin currency is far ahead of the old bitcoin in terms of valuation and performance.
Only 26% of bitcoins were traded in dollars while a staggering 42% of volume was traded in Japanese yen. However, what seemed good for bitcoin currency, wasn’t so good for the cash version, as it had a major variation from the a high of $700 to a low of $300 and below. On Monday, the value came to $200 but it improved a bit and stayed at $260, which is still one-tenth of bitcoin’s price.