24 hours ago, the cryptocurrency Bitcoin was trading below $3,700. Today, it surpassed $4,000, setting a new record and showing no signs of stopping its wild run.
At approximately 12:00 noon, Greek time, Bitcoin reached $4,215 and at the time of writing this article is trading at $4,024.32. And all this, bearing in mind that a week ago Bitcoin crossed the $3,000 mark for the first time. For those interested in following its progress, you can see a graph of its price for the last 24 hours at this Link
But let's look at some possible reasons for this rise. You may recall that two weeks ago Bitcoin went through a “hard fork” and emerged essentially unscathed. The currency then split and a bitcoin clone called Bitcoin Cash, but so far it hasn't received as much attention as expected. A few days later, Bitcoin locked in SegWit, a code modification (or upgrade if you prefer) that fixes plasticity issues and frees up space in the block, allowing more transactions to be stored.
Another reason could be the ICO frenzy. Just last week, Filecoin raised $180 million in a matter of hours. Most investors have to convert fiat currency into bitcoin or other cryptocurrencies to participate in the ICO, which could drive the price up (and give investors their first taste of bitcoin).
Another reason is Wall Street's new obsession with Bitcoin. You can't watch CNBC for five minutes without seeing some trader or analyst giving their opinion, extolling bitcoin as "the best investment of all time.".
What will happen next? Nobody knows. Bitcoin could crash tomorrow by 50%, to $2,000, or rise to $5,000. After all, no one really knows what can happen in an international market. Each user has a different opinion, some say it is a big bubble and should have burst months ago, and others believe that Bitcoin has so far shown only a part of what it could ultimately achieve.
Whichever camp you belong to, heed a friendly reminder: don't invest more than you can afford to lose, because if you ask anyone who has spent a few months in the cryptocurrency world they will tell you that Bitcoin is a roller coaster that goes up and down.
