Bitcoin flies past $3,500 for the first time
The cryptocurrency has been on a tear this week, gaining 24%, as investors appear more sure about its future following years of uncertainty over how its technological underpinnings should be configured.
On Tuesday, bitcoin's blockchain network began its adoption of a new software update called Segregated Witness, or SegWit.
"SegWit is a clever solution that essentially increases transaction capacity," according to Aaron Lasher, the chief marketing officer of Breadwallet, a bitcoin technology company.
The software was devised years ago as a solution to the cryptocurrency's scaling problem, which divided bitcoin power brokers for years and led to a split on August 1.
Investors were virtually unfazed by the split, which resulted in the creation of a clone called bitcoin cash. Selling on that day dropped bitcoin to a low of $2,643. But it has rallied by about 34% since its August 1 bottom.
As for how high bitcoin can go, Sheba Jafari, the head of technical strategy at Goldman Sachs, said back in late July that the cryptocurrency had the "scope to reach 3,691." Jafari has been spot on with her bitcoin call, earlier predicting a big drop was coming.
Dennis Porto, a bitcoin investor and Harvard academic, told Business Insider that over the long term he had noticed bitcoin's price was following Moore's law, a first for a technology's price, and said he thought bitcoin could reach $100,000 by 2021 as long as that continued.
"This poses a unique opportunity for investors: Whereas it was difficult to invest in circuits or internet speeds, it is easy to buy a bitcoin," Porto told Business Insider.
