Bitcoin hits record high of $63,209

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The oldest cryptocurrency, Bitcoin, has touched an all-time peak of $63,209. Since the start of this financial year, the cryptocurrency has given a return of 108%. Currently, Bitcoin has a market cap of $1,140 billion with 18.68 million bitcoins mined till of the total 21 million. Other cryptocurrencies such as Ethereum and Litecoin have also given a huge return of  197% and 100%, respectively, since the start of this calendar year.

Bitcoin prices crashed to around $3,000 in 2017. Since then its price has risen manifold. While many see it as a bubble, crypto lovers say Bitcoin may touch the $1,00,000-mark by 2025-2030.

According to a report by Global financial firm JP Morgan, “Bitcoin could rally to as high as $146,000 in the long term as it competes with gold as an “alternative” currency. UBS in the report had said that the price could continue to climb in the near term given strong price momentum and the potential for further institutional adoption.”

Similarly, a UBS report titled The Rise of Bitcoin stated there are challenges around determining its intrinsic value. “The key reason why we find it challenging to come up with a valuation model is simply that Bitcoin and other cryptocurrencies don’t yet have future cash flows that we can discount.”

The report also states that “As long as the demand for cryptocurrencies is exposed to fluctuation, either because of shifts in sentiment that affect speculative demand or business cycle fluctuations that affect demand for digital payment services, programmable money, or stores of wealth, the volatility of Bitcoin and other cryptocurrencies is likely to remain elevated when compared to most legal tenders and traditional stores of wealth.”