Bitcoin’s value hit a new high on Saturday, reaching over $500 per bitcoin for the first time in 20 months.
At the time of publishing, Bitcoin was still sitting at a price of $545.65 (£372.91) per bitcoin, according to CoinDesk.
While this new high has generated some excitement, it does not match the digital currency’s golden days in November 2013, when the price per coin was just over $1,100.
However, Bitcoin experts believe that the currency’s value will continue to climb for the foreseeable future, which could be attributed to people becoming more confident of Bitcoin’s long-term value, according to Jack Liu, chief strategy officer at Chinese bitcoin exchange, OKCoin.
Liu believes an increase in the price of the digital currency is likely because the costs paid to bitcoin miners will decrease soon, causing fewer individuals to mine, which in turn will slow the rate at which new Bitcoins enter the market. This period of relative scarcity will then push up the value of those units already in circulation.
“Emotions have taken over: Traders have taken their rational lenses off and are buying with the expectation of selling higher in a short period of time,” Petar Zivkovski of bitcoin trading network Whaleclub, told