Bitcoin is sliding after a big change was made in its software

Bitcoin is sliding, trading down 3.88% at $3,296 a coin. Wednesday's selling comes a day after the cryptocurrency hit a record high near $3,500 a coin as a big change was made in its software.

On Tuesday, bitcoin's blockchain network began adopting a new software 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 .

Bitcoin has been charging higher even since. After bottoming out at $2,643 on August 1, bitcoin rallied more than 30% before putting in its record high in response to Tuesday's SegWit implementation.

As for where bitcoin can go from here, estimates range from $5,000 to $100,000.

Arthur Hayes, CEO of BitMEX , a bitcoin derivative exchange, thinks SegWit marks an important milestone for bitcoin's future.

"At long last, the solution touted to solve bitcoin's scaling problems, Segwit, is activated," Hayes told Business Insider . " With Segwit implemented, I believe $5,000 Bitcoin is within striking distance," he concluded.

Josh Olszewicz, a bitcoin trader, seemed to agree. He told Business Insider he sees a "small price bump overall, but there will be a $300 pullback before it marches to $5,000."

But, Dennis Porto, a bitcoin investor and Harvard academic, has his sights set on a much bigger number. He noticed that bitcoin's price has doubled about every eight months, seemingly following Moore's Law. He says if that continues, bitcoin will be at $100,000 by February 2021.

Bitcoin is up 248% this year.