14 DAY TRIAL // Bitcoin has reached an all-time high after passing the $1,700 mark for the first time in history.
The digital currency hit a new record high on Tuesday as demand for Bitcoins grew along with the creation of new tokens to raise funding for startups using blockchain technology, Coindesk reports.
Blockchain is the technology behind Bitcoin and it is, essentially, a financial ledger kept by a network of computers that can track the movement of any asset without actually having a central regulator. This, of course, is essential since the main attraction for Bitcoin and other digital currencies is the anonymity it brings.
Bitcoin has not only topped $1,700 but reached $1,774, meaning it's heading for the next big milestone. So far, this year Bitcoin has grown by leaps and bounds. Taking into consideration that it started the year with a drop down to $900, the climb is that much more spectacular.
According to data from coinmarketcap.com, Bitcoin's market capitalization rose above $52.5 billion on Tuesday.
Up and up
Over the years, Bitcoin has become the preferred coin of the dark web, but also of people who wanted some excitement when it came to their currency. The fact that Bitcoin's valuation is volatile at best didn't seem to bother many people.
Some believe that now that it has reached this level, a bubble could form in the market which will push the price up beyond annual average user growth. However, this development could place the wider cryptocurrency markets on uncertain grounds, once more backing up the idea that digital currencies are volatile.
One thing specialists don't expect to see now is a drop as we've seen at the beginning of the year. While fluctuations are to be expected, the long-term trend is and will remain "up."