The rise in the price of Bitcoin, world’s largest cryptocurrency with multiple warnings on it, is defying all logic, as the cryptocurrency reached $13,000 mark on Wednesday after hitting $12,000 for the first time in the morning. Bitcoin price made an all-time high of $12,947 at around 4.30 pm (Indian time) on Wednesday, according to a leading Bitcoin exchange Coinbase, stopping just $53 short of hitting $13,000. Earlier, today morning, Bitcoin touched an all-new high on Wednesday and topped the $12,000 mark for the first time ever.
Bitcoin is rallying for the last one year with beating almost all the traditional asset classes, be it equities, gold, or real estate, in terms of annual returns. In the last one month alone, Bitcoin has breached the levels of $7,000; $8,000; $9,000; $10,000; $11,000; and $12,000, and is now eyeing $13,000. Over the period of last month only, the value of Bitcoin has more than doubled.
According to Coinbase, Bitcoin made a low around levels of $5,850 on 13 November 2017, and since then it’s been on a continuous upmove. In the last 12-month period, the value of Bitcoin has appreciated at an unusual pace. On 8 December 2016, the value of one bitcoin was quoted at much less than even $1,000 at just $765. According to an Indian Bitcoin exchange Zebpay, a buying price of Rs 9,24,910 and a selling price of Rs 9,11,036 was quoted for one Bitcoin.
Earlier last week, amid rising scepticism over the rapid surge in the value of Bitcoin, CLSA’s Chris Wood predicted that the upswing is still intact and the cryptocurrency is expected to rally further. In his weekly note GREED & fear, Chris Wood, managing director & equity strategist at CLSA, wrote, “GREED and fear would be surprised if the cryptocurrency story did not run further. But the longer term story is whether governments regulate cryptocurrencies out of existence or co-opt blockchain technology for their own purposes.”
However, the world’s largest cryptocurrency Bitcoin has the dubious distinction of being called as a ‘fraud’, illegal, fad, and many such names by eminent bankers, investors and regulators across the world. Yesterday only, RBI warned users again to refrain from buying or investing in Bitcoin. This was RBI’s third warning against the cryptocurrency.
Bitcoin is a type of cryptocurrency, which operates on the encryption technique, but does not have a legal backing from the central bank. It is an unregulated digital private currency created by an unidentified person who goes by the alias Satoshi Nakamoto in 2008. Bitcoin is a digital asset and a payment system. It is commonly called a decentralised digital currency. In India, Bitcoin is traded on several virtual exchanges such as Coinsecure, Unocoin, Zebpay.