Bitcoin’s meteoric rise in recent months continued Thursday as the virtual currency broke down the $ 20,000 barrier and increased to more than $ 23,000 a penny.
The world’s oldest and most popular cryptocurrency rose 20% in just one day and has risen more than 200% this year alone.
The reasons are unclear, but some observers point to organizations like PayPal, which has started allowing customers to use the cryptocurrency.
Other investment professionals are starting to add Bitcoin to their portfolios.
According to Business Insider, billionaire hedge fund manager Paul Tudor Jones and investment banker Mike Novogratz have recently praised Bitcoin, saying it is likely to hold on.
Another reason for the surge would be to anticipate high inflation.
In a recent television interview, Scott Minerd, chief global investment officer at Guggenheim Investments, said that “fast money printing,” coupled with Bitcoin’s shortage, could push it to over $ 400,000 a penny.
Only 21 million Bitcoins will ever exist. There are currently just over 18.5 million. New bitcoins are created by “mining,” where a global network of computers competes to solve complex prize-winning algorithms for fractions of Bitcoins.
If Bitcoin continues at this pace, “testing $ 36,000 will be the next real objective,” said Dan Gunsberg, co-founder and CEO of Hxro, a cryptotrading platform, according to Bloomberg.
Gunsberg added that if the virtual currency fell below $ 13,800, the price could remain static for a while.