Bitcoin has rallied over the last few days to recover much of its losses after a Wall Street Journal report announced news of potential fallout between top developers at the company. Despite a sharp drop in value, the cryptocurrency has been rallying, closing up 6.5% yesterday at $1,110 a coin. Bitcoin had dropped to a new low on Sunday this week moments after the Wall Street report. Since then, though, there has been some momentous progress. In just the three days after Sunday, the currency has rallied 17%. This is a very steady improvement and there is no visible indication that the climb will stop.
The Wall Street Journal had earlier issued a report regarding a potential fall out in Bitcoin. In what was possibly an alarmist article, Wall Street had reported that the future of Bitcoin was on the brink due to infighting among top developers as to where the currency needed to go. Bitcoin is traded in an online digital marketplace. There is a limit as to how many coins can be traded. The coins are traded in blocks and each block cannot exceed the transaction limit of one megabyte.
For many developers, the limit is to promote safety but according to the Wall Street Report, there are many developers within the company that feel the one-megabyte limit is no longer sustainable and needs to be expanded. There was also a proposal to create a platform called Bitcoin Unlimited that would allow people to trade the total amount of coins they wanted. This was red flagged by the Wall Street Journal as a potentially bad thing that could affect how Bitcoin is run and operated in the future. The report affected investor’s confidence and sentiment leading to a dip in currency value.
The currency dipped almost 20% over the weekend closing at $950 per coin. The sustainability of Bitcoin as a currency is something that has been brought to the fray a number of times. Even though the existing model is suitable at present, there is no futuristic plan in place to change the trading model if indeed the market needs change.
2017 has been quite challenging for the cryptocurrency especially in terms of volatility. In 2016, Bitcoin became the top performing currency in the market after adding nearly 120%, and that is not all. At the start of 2017, the cryptocurrency also saw an additional 20% rise only to later crush 35% in a few months after reports emerged that China was planning to clamp down on trading in the country. However, despite the turmoil, the currency still rallied to add 50% in value. It’s been indeed a bittersweet rollercoaster but make no mistake, the value of Bitcoin is still very high. We shall have to wait and see where the wind takes us this year but it looks like Bitcoin currency is going to be one of the most volatile ones in the history of the currency.