Will Bitcoin break more records before this surge is over?
Bitcoin price continues to gain momentum, breaking yet another record as it moves past the $2,000 mark.
Following the latest price spike, Bitcoin now has a total market cap valuation of $32.92 billion
This rapid increase reflects the growing interest in cryptocurrencies, but Bitcoin has experienced significant price surges in the past, only to be followed by an equally rapid decline. Only recently fears over a currency split drove the price back below $1,000.
In 2013 the $1,000 mark was broken, but following the closure of a major Bitcoin exchange, Mount Gox, the cryptocurrency spiraled into a decline from which some thought it would never recover.
However, the price of Bitcoin again grew rapidly, recently surpassing the price of gold on a basis of an ounce to a coin, marking another record in the history of the currency.
Mati Greenspan, Senior Markets Analyst at eToro put the growth of the cryptocurrency into perspective, he said: “Long-term Bitcoin loyalists have made a handsome return. Nearly seven years ago to the day, the first real-world Bitcoin transaction was completed in Florida, when two pizzas were bought for 10,000 Bitcoins. If you’d invested $100 in Bitcoin that day and left it there, you’d be sitting on over $20m right now.”
The already high profile status of Bitcoin has also recently increased on the back of the global WannaCry ransomware attacks, as the ransom was required in the cryptocurrency. While some may have thought this would be damaging for the price, it appears that it has not been the case.
“One might have expected that the WannaCry cyber-attack – in which hackers asked for payment in Bitcoin – would have had a negative effect on the price, but it seems like not even a worldwide ransomware attack can prevent the rise of Bitcoin.” Mr Greenspan said.
The price rise is symbolic of the general increase of interest in cryptocurrencies in general, not solely for Bitcoin, Mr Greenspan said: “While Bitcoin has taken most of the limelight recently, other cryptocurrencies such as Ethereum have also been experiencing major landmark moments. It is currently trading at an all-time high of $124, having broken $100 for the first time on Thursday.”