Bitcoin peaks at $4,500 in latest milestone for volatile digital currency

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Digital currency Bitcoin rose to a new record of $4,500 (£3,492) on Thursday as the currency proceeds to grow following a separation between its supporters.

The virtual currency has grown continuously for the past two weeks since it underwent a “hard fork”, where two competing strands of Bitcoin arose after some of its leading developers opposed on the best way to take it forward.

Experts had anticipated Bitcoin to take a hit after the “hard fork,” which marked the rise of a new currency called “Bitcoin cash”. But Bitcoin, defying expectations has been driven by the split, touching an all time high from about $2,700 (£2,000) at the start of this month.

Bitcoin and other digital money are known for their instability, with the money losing about $12bn in market capitalisation in June when it plunged from about $3,000 to $2,270, according to CNBC.

Notwithstanding its growing value, Bitcoin and other cryptocurrencies have proved volatile in the past. Rival currency Ethereum halved in value between June and July from around $300 to $150.

The huge price growth has generated worries of a new bubble among seasoned investors. “There are no fundamentals behind any of this – it’s all based on public perception, so you can start to see some really strange phenomena,” said Rob Moffat, a partner at Balderton Capital.

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