The price of Bitcoin is worth more. Its current price is $3,315. Its market capitalization has risen to $54 billion. Those who held coins, as well as its miners, stand to benefit from the price rise while those planning to buy the currency will have to pay more when purchasing it.
Bitcoin's historical price rise
The cost of Bitcoin has skyrocketed since its introduction. On July 2010, its price was $0.008. Its price rose to $31 in July 2011. Its value first skyrocketed in the month of December 2013 and reached $1,127 before receding to $204 in early January 2015.
According to coinmarketcap.com, a website that tracks the market activity of crypto currencies, Tuesday's value of Bitcoin is the highest it has ever achieved since its introduction in early 2009.
Bitcoin cash
Some members of the Bitcoin community introduced Bitcoin cash on August 1 this month. Bitcoin cash had an introductory value of $394 when it was introduced. It was created so that it can offer a cheaper alternative option to those who want to gain access to cheaper Bitcoins. According to bitcoincash.org, the new cryptocurrency was also introduced so that users can benefit from faster transactions, lower fees and a less congested blockchain network. The introduction of Bitcoin cash has been timely considering that the value of Bitcoin is on the rise.
The value of Bitcoin cash is however receding. Its value when it was introduced was $394; this value has gone up to highs of $724 a day after it was introduced. It has however plummeted to the current $328, thus benefiting potential Bitcoin cash buyers.
The future of cryptocurrencies
The future of cryptocurrencies is still uncertain.
The currencies are still not widely regulated in many countries. A CNBC article stated that Saxo Bank analyst Kay Van-Petersen had predicted that the value of Bitcoin would reach $100,000 in the next ten years. In December last year, Kay Van-Petersen had predicted that the value of Bitcoin would rise to $2,000 by the end of this year; the price of Bitcoin hit the $2,000 mark on May 20 this year.
A Goldman Sachs analyst who is the head of the companies technical strategy predicted that the price of Bitcoin would reach $4,000 soon.
Despite the rise in the cost of crypto currencies, central banks such as the central bank of Estonia has called the crypto currency market a pyramid scheme. Warren Buffett warned investors against participating in this market while some say that the cryptocurrency market is a boom that is about to burst.
