Bitcoin non-believers might be disappointed with the news that the virtual currency has witnessed an all-time high of above $10,000 (Rs 650,000 approximately) this week on some smaller exchanges and digital currency indexes. The virtual currency has soared more than 900 percent so far this year. Also Read - Facebook eases bans on cryptocurrency adsAlso Read - Bitcoin at 2-month low after South Korean exchange hacked
The value was witnessed on international exchanges and just crossed on US exchanges like Coinbase and Gemini a few hours back. The mind-boggling valuation arrives two days after bitcoin first crossed $8,000 a week back, followed by $9,000 two days ago. Also Read - London police seize bitcoin worth $667,000 from hacker
According to TechCrunch, bitcoin is now up 1,258 percent over the past year, with the cumulative value of all cryptocurrencies up 2,174 percent to a total of $316 billion. Bitcoin alone currently represents about 54 percent of this total market cap.
The currency, created first in 2009, uses encryption and blockchain database for fast and anonymous transfer of funds outside of the traditional centralized payment system. The extraction technique and the possible misuse has left the lawmakers divided on formalizing the virtual currency.
“With Bitcoin nearing $10,000, long-time bitcoiners finally feel vindicated that their currency that has been ridiculed for years, is at last being taken seriously,” Sol Lederer, blockchain director at US technology company LOOMIA, is quoted as saying in a Reuters report.
“Bitcoin’s future is still uncertain; it faces the same serious technical challenges it has for years and faces stiff competition from newer, more sophisticated blockchains. But even if it were to crash, it’s apparent that bitcoin is here to stay,” Lederer added.
Even as Bitcoin is midway being a real currency with a virtual nature, it is yet to be widely adopted. Even as there are over 100 crypto currency-focused funds, people are not aware of bitcoin, and not many investors are willing to buy a stake in it.
Meanwhile, as the Bitcoin value soars, there’s still mystery around its creator. All that is known is the person someone named (codenamed) Satoshi Nakamoto founded the virtual currency. In the latest twist, a former intern at SpaceX reckons that Bitcoins could have been founded by Elon Musk (founder-owner of SpaceX). The former intern, Sahil Gupta, argues that Bitcoin source code was written by someone with a mastery of the C++ language, which Musk has.