Bitcoin, the popular cryptocurrency, hit a record high Tuesday morning as many investors put aside its uncertain future. The price of the cryptocurrency broke the $3,500 mark, hitting a record high of $3,525.04. Later in the trading session, the currency settled at $3,481.
Although there has been plenty of infighting in the world of cryptocurrency, Bitcoin is up 264 percent year-to-date, according to CNBC. The biggest argument among specialists who cover this industry is the backlog of transactions on the cryptocurrency’s block chain. Bitcoin’s “block chain” is what records all monetary transactions into a permanent database.
People who partake in the Bitcoin community want to increase the capacity of the block chain, which will lead to an increase in the speed of Bitcoin transactions. The arguments led to proposals that would expand block chain, including a software upgrade called BIP 91. The upgraded software would move data outside of the network to increase Bitcoin’s overall network.
Rising demand from institutional investors also drove up the price of Bitcoin. The CBOE announced it will combine Bitcoin options and futures contracts on its platform in partnership with the Bitcoin Exchange known as the Gemini Currency Exchange. The CBOE will now allow investors to speculate on the price trends of Bitcoin and allow accredited investors to buy and sell options and futures contracts. The two agencies agreed to a multi-year deal.
Bitcoin cash now has the fourth largest market share in the cryptocurrency industry. Back in July, Bitcoin’s block chain separated into two networks, which led to the creation of a new digital currency called Bitcoin cash. Anyone who held Bitcoin before the two networks separated now owns an equivalent value of Bitcoin cash. The transactions from Bitcoin cash are totally independent of the transactions consumers complete using regular Bitcoins. Since the new digital currency was created from Bitcoin’s core, many analysts consider Bitcoin cash a legitimate digital currency.