World’s most well-known cryptocurrency Bitcoin set a new record on Wednesday. It surged past $20,000 for the first time and notching a new all-time high. CoinDesk figures show that the world’s most prominent digital currency broke through the $20,000 level around 8:30 a.m. EST. It then went on to rise to as much as $20,817.80 by 9:15 a.m.
The Bitcoin has seen a meteoric rise since March when it stood at $5,000. The reason for its formidable growth is due to online payments giant PayPal saying it would enable account holders to use cryptocurrency. High demand from larger investors due to its potential for quick gains, resistance to inflation. Also, the expectation that Bitcoin will soon become a mainstream payment method. The value of all bitcoins in circulation is now around $380 billion.
Quite a number of central banks have also announced plans for bank-backed digital units. Banks in China, Sweden and also the US Federal Reserve are testing digital applications. This is in response to Facebook’s recent moves to produce its own digital unit, Libra.
As reported by Forbes, Denis Vinokourov, head of research for London-based digital asset firm Bequant said, “Now that Bitcoin has passed $20,000, expect another wave of retail flow to materialize and drive the leading crypto asset higher. People who missed out on the last run to nearly $20,000 don’t want to stay on the sidelines again.”
But a word of caution: Investing in crypto coins is highly speculative. The market is largely unregulated therefore investors should be prepared to lose their entire investments too.
Also Read: Bitcoin Scam : Raj Kundra called in for questioning by ED