Bitcoin has just hit 1600 dollar mark and investors say that it will cross 4000 in coming 8-14 months. The recent price increase is due to the developments done with rival currency litecoin. Just in the last 30 days, the Bitcoin has increased by 33 percent.
Just last month, there was a massive change in the coding of the rival litecoin which is being called SegWit. This allowed the transaction speed to be increased. Litecoin shows the soft form can be done that will increase the block size for bitcoin as well without any major disruption.
Folks at Global Advisors Bitcoin Investment Fund said that successful soft fork in litecoin has forced the people to think that people could get excellent SegWite implementation in bitcoin as well. This will allow them to increase the capacity and move them to next level.
Not all is fine though. Everytime bitcoin has seen a rally, the peaks have been backed by sharp pullbacks in prices. This means it can get back to 1100 dollars soon. That being said, given the percent YoY growth, bitcoin appears to be a pretty safe investment.
To give you an idea, just 8 months back, the price of 1 bitcoin was around 400 dollars and it has multiplied four times now despite going back and forth many times in that very period.