The price of Bitcoin reached an all-time high, smashing through the $5,000 mark as it rebounds from a short period of uncertainty. One bitcoin is now valued at $5,161 as of 0822 GMT.
Bitcoin is the biggest and most popular cryptocurrency. Its market capitalization is 53 percent of the market capitalization of all cryptocurrencies. "It's going to be a very volatile asset for a long time".
This week, Russian Federation has announced the regulation of digital currencies, as President Vladimir Putin said the instrument has significant financial risks. In fact, Russia's central bank said they are considering banning cryptocurrency trading websites. Recent reports that the Chinese government will ease regulations and that Goldman Sachs Group is exploring how it could help its clients trade cryptocurrencies are now helping sentiment.
The main reason why the valuation of Bitcoin is rising is due to a rise in demand for the cryptocurrency.More news: Kremlin dismisses reports Kaspersky Lab allegedly stole NASA data
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Up over $1,000 since last month, Bitcoin has risen over 25% within the last 30 days.
The surge comes just weeks before the latest in "hard forks", or splits, that will result in a new form of the currency called Bitcoin Gold.
Another major difference is that bitcoin's creation, value and integrity come from complicated, mathematical wizardry, known as "blockchain" technology, which regulates the creation of new units and essentially ensures the security of every transaction involving the digital currency. The change, which started on August 1st, was made to give the money a larger infrastructure.
It's also largely unpredictable which digital currencies will have staying power.