Cryptocurrencies enjoyed a brief moment in the limelight upon their introduction, even as they promised a new universal payment method for online monetary interactions – with Bitcoin leading the way.
Quickly, however, the downside to non-government affiliated currencies became more than apparent. They were unregulated and, therefore, dangerous in more ways than one.
Bitcoin lost their footing at the close of 2013 when its market price hit $1,147 on November 29. Not only were users losing interest, but so were investors. After the fall, prices languished for many months in the $200-$300 range.
But Bitcoin is back – and this time it is resurfacing without all the fanfare and hype of the first go around.
The price of the digital currency is now trading above $750, which puts Bitcoin at a two-year high and up about $500 over the past year.
The question remains: Why the sudden resurgence in price?
Some in the Bitcoin community are pointing to an unusual event called “the halving.”
This is an adjustment to Bitcoin’s protocol that controls the creation of new coins.
When Bitcoin was created, a “cap” was established – the creators of the cryptocurrency originally determined that no more than 21 million bitcoins would ever be mined.