Bitcoin Price Slumps Back After Topping Out at $7,800

By Dave Bartkowiak Jr.

Bitcoin topped out at just more than $7,800 this week before falling back down to $7,000.

The spike from $7,000 to $7,800, then back down to $7,000, happened after a plan to expand the bitcoin network capacity reportedly fell through.

From CNBC:

“The SegWit2x upgrade was scheduled to take effect around November 16 in an effort to increase the speed and cost of bitcoin transactions. However, more and more major bitcoin developers dropped their support in the last few months.

For most of this year, investors have had a negative view on bitcoin splits out of uncertainty over the digital currency’s future. However, since bitcoin rose to record highs after its August split into bitcoin and bitcoin cash, investors began betting that subsequent splits would send the price of the original bitcoin higher. Investors at the time of a split also technically receive an equivalent amount of the offshoot currency.”

What is Bitcoin?
Bitcoin is a digital currency that is not tied to a bank or government and allows users to spend money anonymously. The coins are created by users who “mine” them by lending computing power to verifying other users’ transactions. They receive bitcoins in exchange.

The coins also can be bought and sold on exchanges with U.S. dollars and other currencies. Their value has fluctuated over time.

Because the currency isn’t formally regulated, its legality is a bit fuzzy. The currency has also drawn the ire of many in law enforcement and cybersecurity because it’s difficult to trace, making it a currency of choice for hackers behind ransomware attacks. But in September, New York state regulators approved their first license for a company dealing in bitcoin.

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