Widely-known cryptocurrency Bitcoin has scaled a record high of $50,000 on Tuesday. The rally is fuelled by the signs that the virtual currency is gaining acceptance among the investors. So far this year, bitcoin has gone up nearly 72 percent.
Vikram Rangala, CMO of ZebPay, said, “This latest high for bitcoin is not the big news. The big news is why. It’s not just speculation. It’s smart value investing by institutions, individuals, and even governments in a breakthrough technology."
According to Rangala, Bitcoin is an inflation-proof, corruption-resistant store of value backed by more reliable and transparent accounting.
"That is real value. In the near future, we’ll see 60, 70, and $100,000. In between we’ll also see volatile dips and the usual reports about the bubble bursting. Bitcoin isn’t a bubble. It’s a part of our economy now.”
On February 10, Bitcoin had crossed $48,000-mark after electric carmaker Tesla invested $1.5 billion, becoming the biggest company yet to back the controversial cryptocurrency.
Tesla said that the decision was aimed at diversifying and maximising its returns on cash.
Twitter CEO Jack Dorsey also said last week that along with noted rap artist, Jay-Z, he will invest 500 bitcoins (nearly $23 million and over Rs 170 crore) in an endowment named '₿trust' to fund Bitcoin development, initially in India and Africa.
Besides Tesla, US firms and traditional money managers have started to buy a lot of Bitcoins, according to a Reuters report.
First Published: IST