Tensions are rising with North Korea and the U.S. both issuing ultimatums and warnings without respite and the impact was clearly seen last week on the stock market. The traditional safe havens and in particular, gold, enjoyed a good week with investors making a clear switch to the previous metal. However, the performance of virtual currency, Bitcoin, turned out to a surprise element with it touching an all-time high on Friday.
20% improvement over the week
Even as stocks across the globe weakened after the worsening of the situation between North Korea and the U.S., Bitcoin appeared to rally significantly. Look at its weekly performance and you will see that the virtual currency soared by some 20%. Gold also soared, but this was expected considering it is the most popular safe haven investment that gains when uncertainties creep into the market. However, it now seems that Bitcoin is exhibiting some of the characteristics of this historic safe haven investment. It is not clear if Bitcoin will continue its upwards momentum over the coming days.
On Friday alone, Bitcoin gained 3.5% to touch $3586.23, which is its all time best until now. For the year long period, the currency has now more than tripled value, a most significant achievement indeed especially considering that rival Ethereum is also performing well.
SegWit upgrade gains support
Meanwhile, there is more good news in store for the virtual currency. Last week the much talked about split into Bitcoin cash happened without much impact on the currency's valuations. This split was backed by a majority of Bitcoin developers. However, a further upgrade is on the books for the currency. This upgrade, popularly known as SegWit, has also garnered the support of a vast majority of developers. With this upgrade in the offing, the currency has just gained further support for its rally.
Institutions recognizing the value of Bitcoin
Virtual currency experts are pointing out that many entities are now becoming more aware of the benefits of cryptocurrency as opposed to traditional payment methods. In particular, the fact that Bitcoin does not react like other currencies to market fluctuations is a point very much in its favor. There is clear indication among those familiar with Bitcoin and other similar virtual currencies that the former does enjoy a special place in this niche and may well become the standard. If demand from institutions grows, there may be no stopping this virtual currency in future.