Bitcoin Outperforms With All-Time High Record, Breaches $28,600 Mark

Bitcoin Vs Dollar: Bitcoin surged to a record $28,599.99 mark after the virtual currency almost quadrupled in value this year amid greater interest from bigger investors and a broader bull run in the cryptocurrency. The world's most popular cryptocurrency was last up 6.94 per cent at $28,119. Bitcoin has witnessed an exponential surge by almost half since crossing the $20,000 mark for the first time on December 16. the virtual currency has also registered an uptrend demand from larger US investors, who are mostly attracted by its perceived inflation-hedging qualities and potential for quick gains. It has also recorded a huge surge in demand after the US-based online payments company PayPal allowed its customers to use the virtual currency on its network. (Also Read: Bitcoin Comes Within $1,100 Of All-Time High. Here's All You Need To Know )

According to investors, the limited supply of bitcoin, produced by the so-called mining computers that validate blocks of transactions by competing to solve mathematical puzzles, has helped in powering upward moves over the past few days. "The supply side to the bitcoin market will remain tight," said Jacob Skaaning of crypto hedge fund ARK36. According to the industry website CoinMarketCap. the latest gains have taken bitcoin's market capitalisation to over $518 billion

Bitcoin has outperformed in 2020 and its rally has drawn huge momentum from greater demand for riskier assets following the central bank stimulus measures, in an effort to combat the COVID-19 impact. The cryptocurrency has a reputation for being inflation proof. Some of the major central banks across the globe are exploring possibilities to allow the issuance of digital currencies. A bitcoin is simply an equivalent of cash but in electronic form. It is similar to any other real currency.

Ever since the cryptocurrency's launch, Bitcoin's journey has been characterized by many ups and downs, and plagued with controversies because it is still not recognised as legal by several central banks. Meanwhile, the other major cryptocurrencies, which tend to move in tandem with bitcoin, were trading flat. Ethereum, the second-biggest virtual currency, was down 0.4 per cent, on track for a 2020 gain of around 465 per cent.