As the world's most popular cryptocurrency, Bitcoin has been experiencing a surge in its value over the last year. Now, it has hit a new high, reaching a valuation of $2,000 per coin for the first time.
The currency has come a long way in the last few years. It first reached a milestone valuation of $1,000 back in 2013, but then dipped in value significantly, partially due to issues with Mount Gox, one of the largest Bitcoin exchanges. The currency has, however, stabilized greatly in the last year and has been on the rise ever since.
The latest valuation not only marks a new record for the cryptocurrency, but also brings the total market cap - the total amount of the currency in circulation worldwide - to $32.92 billion, a significant achievement in the currency's quest for greater stability, and the possibility of competing with national currencies in the near future.
It's not all roses and sunshine for Bitcoin, though, as this increase in value has been mirrored by other cryptocurrencies as well, albeit at much higher rates of increase of up to 1000%. As a result, of the total market cap of around $70 billion for all cryptocurrencies, Bitcoin now has only 47%, compared to 80% just a few months ago.
This decline has been attributed to the extreme popularity of Bitcoin, and the inability of the network to scale in stride, resulting in slower confirmations for transactions. While Bitcoin currently remains the king of cryptocurrencies, this trend may suggest a possible future where alternatives like Ripple or Ethereum may match or even exceed Bitcoin's current market share.