Virtual currency bitcoin on Thursday reached a record high after trading for $20,000 for the first time following a stable run of high value in recent weeks.
Bitcoin gained 4.5 per cent points and traded at $20,440 (roughly 14.9 lakhs) before pulling back to $20,145 (roughly Rs 14.8 lakhs).
Ever since online payments giant Paypal said that it would enable its account holders to use cryptocurrency, the value of bitcoin since March shot up from $5,000 (roughly 3.7 lakhs) on an accelerated pace, amounting to 170% annual growth.
A number of central banks have meanwhile responded to the rise of cryptocurrencies and the dwindling global use of cash by announcing plans for bank-backed digital units.
Facebook’s recent moves to develop its own digital unit Libra has gained some attraction, mainly from central banks of China and Sweden along with the US Federal Reserve.
Bitcoin is only 12 years old and has already made a name for itself in the trading business. It is traded massively even though no central bank has regulated it yet. It emerged as an attractive option for investors and hedge funds as it provides an alternative to the banking system.
