Bitcoins are the new cash now. Bitcoins are electronic or digital currency that helps process transactions without the use of the
third party such as banks. Bitcoins also become the major means of investment and many people are converting their investment
into bitcoins. There are numerous advantages of using bitcoins over other normal currencies and that is what made bitcoins to hit
the highest rates of all times.

The rates of bitcoins are greatly influenced by supply and demand but majorly what drives the people crazy for bitcoins is the hype.
When a hype is created about something, the people rush towards it and that is what happened with bitcoins this time.In January
2017,the rate of bitcoins was $997 per bitcoin and today the rate has reached to $4,500 per bitcoin. The bitcoins have not seen such a
huge rise in the rate before and it is expected that it will rise further as there is no limit to as how high the rates of a bitcoin
can go.

One important reason for this rise in the value of bitcoins as this investment means is scarce. The bitcoins are limited and this is what
has caused the value to reach so high. A process called mining is used to produce bitcoins and there is a limit to that.Since 2009,
the time it was created, 16.5 million bitcoins have been mined and there is a limit of 21 million. This is a major reason why the value
is going at its peak.

In an interview with Fortune, the founder of the startup management, William Mougayar quoted that the Korean and Japanese have
an increased interest in bitcoins and this is also one of the reasons why the rates are at its peak.

Many people think that this rise is a bit concerning. Sheba Jafari, an analyst at Goldman Sachs stated, “The market should, in theory,
enter a corrective phase. This can last at least one-third of the time it took to complete the preceding advance and retrace at least
38.2% of the entire move and from current levels, that would measure out to around $2,221.”

At the starting of the year, miners had planned an upgrade for bitcoins in two parts. The first part was implemented in this very month
and will result in a hard fork, but there are still questions about when the second part will be implemented. The second part was about
increasing the block size of the bitcoin to 2 megabytes. If these upgrades are shunned by miners on a great scale then it might result
in a new bitcoin currency.

After every peak value of the bitcoin a time comes when the value drops greatly, this is what happens every time bitcoin reaches a high
value. This time bitcoin has reached the highest value and it is expected that it might increase further but a downfall is also expected.
Let’s wait and see what happens to the trends of bitcoins.