The worldwide crypto-currency and digital payment system, Bitcoin, has crossed all records and reached a new high price, just a month after its turmoil. According to the Coindesk, a news site specializing in digital currencies, the virtual currency reached $7,000 per coin as recorded in the Bitcoin Price Index in Monday trade.
Bitcoin value had never attained the $3,000 mark until the weekend. The market value of all existing Bitcoins has currently surpassed $56bn (£43bn). The creation of the spin-off crypto-currency, Bitcoin Cash last week, has resulted into this terrific upsurge.
The new asset has been hoisted to an amount of $727.54 (£557) per coin in 2nd August and is being traded well under the peak price. However, due the assurance of support from Coinbase, one of the top exchange and wallet services, the future of Bitcoin is now more secured than ever. Coinbase had previously declined any such commitment to the Bitcoin investment but has now come around.
“We are planning to have support for Bitcoin Cash by 1 January 2018, assuming no additional risks emerge during that time,” as posted in the Coinbase blog.
The original Bitcoin value went through a period of massive swings in the month of July raising the concern of a “civil war” amongst other rival plans in order to speed up transactions. This caused its value to go downhill to $1,938.94 (£1,485) on the 16th of July before a compromise scheme named Segwit2x resulted into a turn of events.
Unhappy with the Segwit2x initiative, a group of insiders came up with the fresh plan to fork the currency. On 1st August, a Bitcoin Cash token was offered to the investors to counterpart every original Bitcoin token they own. An irreconcilable version of the block chain ledger was created by the move, keeping track of the past transactions.
The original Bitcoin could have been undermined by the new initiative, especially if many miners parted ways. The Bitcoin Cash was designed to appeal the miners’ interests, who provide the computer processing power of transaction authorization.
Though the parties and investors in support of the new crypto-currency remains limited, it is advisable to mine the original Bitcoin block-chain rather the new Bitcoin cash. A block-chain advisor, Michael Parsons commented,”What this has shown is that Bitcoin is much more resilient to forks than some people thought”. Further he continued that, “It appears that there is room for more than one type of Bitcoin to exist.”
Many other market observers have even commented that the introduction of the new Bitcoin Cash has resulted into an upsurge of the original Bitcoin value. “We’ve seen a lot of people selling their Bitcoin Cash in order to buy more Bitcoin,” told Matthew Newton, the market analyst from eToro trading platform. He went on to comment that, “On top of this, some investors sat on the sidelines last week, waiting to see what happened, these investors are now moving back into Bitcoin.”
Article by Sushmoy.