Bitcoin, the popular virtual currency, continues to set high records beginning this year. The currency soared up to 16% and set a record price of $3,434.02 per coin against the US dollar this Monday. This is following the division over the future of the cryptocurrency.
The virtual coin had never crossed the $3,000 mark until what happened this weekend. The market value of all bitcoins has now surpassed the amount of $56 billion.
The Reason for the Surge
The surge followed after the creation of the spin-off crypto-currency called Bitcoin Cash last week. The new virtual currency is trading below the peak price of $727.54 per coin per US dollar.
However, the future of Bitcoin Cash does not appear to be more assured and stable. One of the leading exchange and wallet services, the Coinbase, promised that it would continue supporting Bitcash Coin until January 2018 even after refusing to commit before.
The value of the original Bitcoin experienced the increase in value when July entered. However, owners express their concerns over plans to speed up all the transactions.
When a compromise scheme named Segwit2x gained favor, the value of the cryptocurrency went down to $1,938.91 last July 16. After a group of insiders had expressed their unhappiness with the initiative, Segwit2x was scrapped.
A lot of traders believe the downtrend is caused by the head and shoulders formation that will take place before the fork. To match every Bitcoin token the investors have, the Bitcoin Cash token was offered last August 1. The move helped keep track of all the past transactions.
The original Bitcoins continue to remain more profitable than the Bitcoin Cash. It also supports the new crypto-currency. Since last week, Bitcoin Cash’s price tumbled 67 percent. It has a $4 billion market cap compared to the original Bitcoin’s market cap of $53 billion.