Bitcoin, the cryptocurrency known for being volatile consistently, is seeing surges in its price yet again. The highest recorded price in two years is not without reason, though, as the amount of bitcoins mined is set to drop by half over the next month.
As we know, Bitcoins were created such that there will never be more than 21 million units in existence. To ensure that the process was smooth and continued over the next century, a process known as “halving” was deployed, which cuts down the amount of the currency mined by half.
The current quota of the reward is 25 bitcoins, which is set to drop to 12.5 bitcoins in 26 days’ worth of time. With the supply set to fall quite dramatically over the next few weeks, it is understandable that investors are trying to get their hands on as many as possible, ASAP.
The rising interest from China could be another reason behind the currency’s whirlwind rise, says Market Watch. As noted with the recent price hike, which saw the price jump from $580 on Saturday to more than $700 on Monday, almost 85% of the transactions during the time period were in yuan, the Chinese currency.
As a result, as it stands, the price of a single bitcoin is currently hovering around the $700 mark. It still has quite a way to go though if it has to come anywhere near its $1147 peak it hit in February 2014.