London: Cryptocurrency Bitcoin on Monday rose to an all-time high of $9,721 and is now worth more than seven times an ounce of gold.
According to The Guardian, Bitcoin is now close to reaching five figures even as market analysts warn of ‘a huge bubble’.
The cryptocurrency, which started the year at $1,000, had reached $5,000 by October.
However, experts believe that the currency is now more volatile than ever.
“Rather than a commodity or currency, bitcoin is like owning stock in a company that will only ever issue 21m shares and never pay a penny in dividends,” said senior market analyst, ETX Capital, Neil Wilson.
“The only way it has value is if the next guy is willing to pay you more for it – the greater fool. With no intrinsic value to bitcoin, it’s hard to see this as anything other than a giant speculative bubble,” Wilson added.
Bitcoin is a virtual currency that emerged in the aftermath of a financial crisis and allows people to bypass banks and traditional payment processes to pay for goods and services.
However, banks and other financial institutions have been concerned about the early associations of the currency with money laundering and online crime, and it has not been adopted by any government so far.
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(With ANI inputs)