Bitcoin has had a rough ride in the past few days after hitting record highs, then dipping below $1,000 and now just holding steady, as traders ponder the future of the underlying technology behind the cyrptocurrency.
On March 10, bitcoin hit a high of $1,325.81, but dipped to around $944 on Saturday. The price has recovered somewhat and was trading at around $1,049.20 at the time of publication. The recent volatility is due to a number of factors:
- The rejection by the U.S. Securities and Exchange Commission (SEC) of an exchange-traded fund (ETF) proposed by Cameron and Tyler Winklevoss
- Chinese authorities forcing bitcoin exchanges to halt withdrawals of the virtual currency
- Concern of the future of the underlying technology of bitcoin
This last point refers to a potential bitcoin "fork" which would result in the emergence of two cryptocurrencies – one known as Bitcoin and one known as Bitcoin Unlimited. For a full explanation of this debate, click here.