Bitcoin is up 150% against the US dollar so far this year
Bitcoin Price Latest News: Virtual currency Bitcoin surged more than 10 per cent to $18,450 on Wednesday, extending a bull run that began last month after US-based online payments company PayPal allowed its customers to use the cryptocurrency on its network. Bitcoin was last seen quoting at $17,979.0, up $1233.9 - or 7.37 per cent - compared to its previous close of $16,745.1. Though highly volatile and still not recorgnised as legal by many central banks, Bitcoin has caught the attention of many investors for its exponential returns - having touched the $1,000 mark for the first time in 2013.
On Wednesday, Bitcoin swung in a more than $1,800 range of $16,633-18,450, a day after surging to its highest since December 2017, as the cryptocurrency's perceived quality as a hedge against inflation and expectations of mainstream acceptance lured institutional and retail demand.
Bitcoin's 2020 rally has drawn momentum from strong appetite for riskier assets following unprecedented government and central bank stimulus measures to combat impact of the COVID-19 pandemic, and its reputation for being inflation-proof.
Bitcoin is up 150 per cent against the US dollar so far this year, having bounced back 360 per cent from its March lows due to the coronavirus pandemic.
Major central banks around the globe are exploring whether to allow the issuance of digital currencies.
A bitcoin, similar to any other real world currency, is the equivalent of cash, but in electronic form. In other words, you can't hold a bitcoin in your hand, unlike currencies such as dollars or rupees.
Like a banknote or coin, it gives its holder a direct claim on the central bank, bypassing commercial banks and offering a greater level of security as a central bank can never run out of the currency it issues.
While many analysts are viewing Bitcoin as a possible inflation hedge, others are still skeptical about its acceptance as a substitute to real currency.
Other major cryptocurrencies - from the likes of ethereum and XRP - have also risen taking cues from the appreciation in Bitcoin.
