Media attention to its rise has only added fuel to the rally. But investors in digital currencies and companies that trade or mine them are warning people to be skeptical of Bitcoin's recent rise and to be braced for a lot of volatility.
It's been a wild ride for bitcoin the last three years. The digital currency made its big Wall Street debut in December 2017, when the major futures exchanges rolled out bitcoin futures. The attention drove Bitcoin to roughly USD 19,300, a then-unheard of price for the currency.
Then it all evaporated. The currency's value plunged sharply in 2018, and by December of that year Bitcoin was worth less than USD 4,000 a coin. Up until this most recent rally which started in October, Bitcoin generally floated between USD 5,000 and USD 10,000.
While in the last two years companies have embraced the technology that underlies digital currencies like Bitcoin, a concept known as the blockchain, the actual uses for Bitcoin have not really changed since its rally three years ago. It's still largely used by those distrustful of the banking system, criminals seeking to launder money, and for the most part, as a store of value.
In fact, other investments typically used as safe havens during uncertain times notable precious metals have been trading at near record highs as well.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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