Bitcoin jumped to a record high of $28,599.99 (approximately 2.1 million rupees) on Wednesday. The value of the digital currency has almost quadrupled this year due to increased interest from large investors.

The world’s most popular cryptocurrency recently rose 2.3% to 28,012 US dollars (approximately 2.05 million rupees). Since breaking through US$20,000 (approximately Rs 1.5 million) on December 16, prices have soared by nearly half.

Bitcoin is increasingly seeing demand from larger American investors, which is attracted by its perceived quality of inflation hedging and the potential for rapid profitability, and the expectation that it will become a mainstream payment method.

Investors have stated that the supply of Bitcoin is limited, which is produced by so-called “mining” computers that use competition to solve mathematical puzzles to verify transaction volumes, which has driven the rise in recent days.

They say that many people who have recently entered the market maintain positions.

Jacob Skaaning of crypto hedge fund ARK36 said: “The supply side of the Bitcoin market will remain tight.”

According to the latest data from the industry website CoinMarketCap, the market value of Bitcoin exceeds US$518 billion (approximately Rs 379.330 billion).

Other major cryptocurrencies that tend to move in sync with Bitcoin are flat. Ethereum, the second largest, fell 0.4% and is expected to rise by about 465% by 2020.

© Thomson Reuters 2020

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