Bitcoin Smashes Through $6,100, Hits a New Record High at $6,147.07

On Saturday, Bitcoin set a new record high, breaking through the $6,100 barrier.

According to data from CoinDesk, an industry website, the cryptocurrency reached an all-time high of $6,147.07, a day after smashing through the $6,000 mark.

Much of the increase can be attributed to another future split in bitcoin which known as a “fork”. This will lead to the creation of bitcoin gold, a new cryptocurrency. Owners of bitcoin will receive some bitcoin gold when it is issued, basically giving them free money.

However, on Friday, Alex Sunnarborg, a founding partner of Tetras Capital which is a cryptocurrency fund, informed reporters that bitcoin investors were betting on bitcoin maintaining its status despite the split. Bitcoin already experienced a fork in August when a bitcoin cash, a new cryptocurrency, was created. Despite this, bitcoin has remained to perform strongly.

At the same time, there are rumours that China could cancel its ban on cryptocurrency exchanges which is also providing bitcoin with a boost.

Confidence around bitcoin continues despite big business figures such as Jamie Dimon, the JPMorgan Chase CEO, calling it a “fraud” and stating that people who invest in it are “stupid.”

In an unscientific survey that was conducted by CNBC this week, almost half of the more than 23,000 people who voted said that bitcoin is heading to more than $10,000. In a recent interview, Michael Novogratz, a former hedge fund manager, informed reporters that he believes that bitcoin is heading to $10,000 in the next six to ten months.

A favourable regulation in Japan which recently enabled companies to receive the digital currency as payment has also helped Bitcoin. According to industry website CryptoCompare, about 57% of the trade in bitcoin was made in Japanese yen on Saturday.

However, the virtual currency has also experienced regulatory setbacks such as China’s ban on cryptocurrency exchanges.

Still, the price of bitcoin has increased over 500% year-to-date.