August has been a great month for almost all digital currencies but the most popular cryptocurrencies such as Bitcoin, Ethereum, and Bitcoin cash have achieved the record-breaking rise in terms of value. Even though the last week was the worst for digital currencies in a long time, almost all digital currencies remained in their record value ranges. When it comes to these digital currencies, Bitcoin is the one that has recorded the biggest rise as it recently hit the stunning $4,500 value.
This week, Coinmarketcap.com published a report in which they analyzed the values of these cryptocurrencies. Among all the pieces of information in that report, there is one that surprises the most. This week, the value of Bitcoin and Ether rose once again and that was what pushed the combined value of all digital currencies to the unprecedented heights.
Setting a New Record
This report revealed that the current value of all cryptocurrencies is bigger than $160 billion, which has never happened before. The previous record was $156.4 billion and it was reached on August 25th, 2017. Most recently, the value of one Bitcoin was $4,397.32 which is lower than the record of $4,522.13 but still higher than the value Bitcoin had in July.
On the other hand, the value of Ethereum is also growing and most recently, one Ether has been valued at $342.71. Even though this has been a very good month for these digital currencies, there are those whose value has not followed big trends. Bitcoin cash, for example, has been recording a decrease in value and most recently, the value of one Bitcoin cash coin was $599.16, which is 3.6 percent down from their highest value.
What Drives Digital Currencies?
Recently, many have tried to find the reason why digital currencies have been recording these breakthrough values. One of the common things that all experts include in their analyses is the fact that platforms for trading digital currencies have been decentralized and because of that, they have become more available. In that kind of a situation, more and more common people who previously hardly ever heard about digital currencies have become involved in the business. Besides that, they also claim that the value of digital currencies has risen because of the growing interest of the investors who saw their opportunity in the digital currencies market.
In many countries, governments have not imposed tough regulations unlike in some other fields of the financial markets and that could have driven those small and big investors towards digital currencies. Those countries who have dealt with this issue on the legislative level have imposed a taxation on each digital currency transaction which slightly reduced the value of digital currencies.
However, considering that the number of those countries is very small and since there are reports that say that the U.S. Congress is preparing a bill that would prevent the government of the United States from imposing a similar tax, digital currencies have once again gained traction and their value is reaching heights that rarely anyone could have predicted. At this moment, the future of digital currencies looks good but there are those who are warning that this could be just a bubble effect and that this market could collapse anytime.
Written by Ivan Potocki
