In case you’ve been following recent bitcoin news, alongside our blog posts, then chances are that you’re well-aware of the massive value growth that the coin has seen during the last couple of months. Well, it seems like nothing is stopping the bitcoin train, as its value has recently topped the $5,000 threshold for the first time ever, hence setting a new all-time high, and encouraging even more people to get involved and place their investments.
With this aspect in mind, it is important to point out the fact that as of this moment, the all-time high of bitcoin rests at $5,005, as dictated by the CoinDesk price index. The overall value growth is simply amazing considering the fact that the yearly yield of bitcoin is of 420%.
In regards to the main reasons backing this growth, there are numerous theories widely accepted by economic analysts, including, but not limited to the advancements in blockchain technology, the growing interest in bitcoin and other digital currencies (note that the value of Ethereum has also increased considerably this year), worldwide political scandals, financial pressure set by governments, continuous and sustained inflows of capital coming from investors, and last but not least, the technical upgrades that bitcoin has recently faced following the hard fork on the 1st of August.
In terms of the technical upgrades, Bitcoin implemented a new protocol known as Segregated Witness, whose main purpose is to increase the capacity of each transaction. In return, this will help relieve pressure put on the network, its nodes and miners, while also increasing the capacity of the network. Another great benefit of this technical upgrade is the fact that transaction times will also be shortened while fees are also bound to be reduced even more, which is absolutely great news for the network. The hard fork also put an end to the negative block size debate that has been shadowing the bitcoin community for the last year, by creating two separate networks of operation, out of which, the traditional bitcoin ended up being successful (BTC).
Apart from this aspect, another great influence was played by the numerous initial coin offerings (ICOs) being made by the creators of alternative digital currencies, many of which are quickly gaining ground. Regardless, Bitcoin remains the king of all.
Based on everything that has been outlined so far, what do you personally think about the massive growth in value for bitcoin and other digital currencies? Let us know your thoughts in the comment section below.