Last night on August 4th, Bitcoin skyrocketed to a new all time high of almost $3300. Many people were wondering why this price rise happened in the first place, and today on Cryptoblog, I am going to tell you the multiple reasons Bitcoin is on another bull run!

The first and largest reason is because of the drama around the Bitcoin hard fork. In case you didn’t know, On august 1st, Bitcoin split into two different cryptocurrencies; Bitcoin and Bitcoin cash. They split because both sides wanted to fix Bitcoin scalability but disagreed on how to do so. On August 1st Segwit was voted into effect by miners, and the Bitcoin Cash activists did not want Segwit, so they created their own version of Bitcoin. If you want to learn more about Segwit, you can check out another article I wrote called “What is Segwit”. In the months leading up to this vote, markets were flat and this is because investors heads were filled with Fear, Uncertainty, and Doubt, or F.U.D for short. Nobody including myself knew what was going to happen during this vote, but luckily for the Bitcoin community, Bitcoin Cash split with relative ease. Many investors were hesitant to invest before this vote and wanted to wait until after it happened and the dust settled. Now that Bitcoin held its value and exchanges opened back up, people threw in their money and had more confidence in Bitcoin with Segwit.

Another reason is more technical and has much more to do with Bitcoin Cash. For people who are new to Bitcoin, when you had Bitcoin before the split, depending on what exchange you had or what wallet you held your coins in, you would have one BTC and one Bitcoin Cash or BCH after the split. Since BCH has value, people wanted free money and many investors started buying more BTC so they could have BCH after it split. This surprised me, as I assumed along with many other people that BTC price would come tumbling down before the vote due to F.U.D.

And the last reason for the sudden price increase is the massive selloff of BCH. When BCH was launched, the supply was very low. This was because miners had to mine a block with the same difficulty as BTC but with only 1% of the hashing power since very few pools wanted anything to do with mining BCH. Blocks took hours to be mined and exchanges could not get their hands on very many BCH to sell. Knowing the laws of supply and demand, if the supply of a good is low, demand as well as price will rise. This is why on many exchanges, BCH was priced at over $1,000. People did anything they could to buy BCH, and as the supply increased the price lowered significantly. As of me writing this, the price of BCH plummeted to just over $200. People who bought at the top were quick to realize their mistake and sold their BCH and bought BTC.

I hope you liked my short summary on how Bitcoin is on its first bull run in months. If you liked my article and Cryptoblog in general you can donate to my Bitcoin, Ethereum, Dash or Litecoin wallet. If you’re like me and don’t have any money, you can click on the referral links below and get free Bitcoin or Dogecoin!

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Refferals to Date; 8/6/2017; (55)