Bitcoin, a mode of payment and digital currency, has for the first time topped gold in terms of per unit value.
One unit of Bitcoin, as of Thursdayâ€™s close of trade, was worth $1,268 against $1,233 per troy ounce of gold, BBC reported. This also marks the cryptocurrency’s all-time record-high.
The volatile currency has seen its ups and downs since its introduction to the world in 2009. It fell first in 2014 and then in late 2016, but has now reversed its losses to achieve this level.
Experts believe the rising demand for Bitcoin in China is the primary reason for the price hike observed yesterday. The digital currency, which offers the benefits of no state control and behind-the-screen transactions, is quite an appealing medium to trade with for many.
However, Forbes contributor Laura Shin said the surge was “fueled by speculation that a bitcoin ETF could be approved by the Securities and Exchange Commission,” which, she believes, will make a decision on March 11.
It is perhaps these factors that led money to allegedly leak out of China, following which the countryâ€™s authorities initiated a probe.
The flow and verification process of the digital currency is controlled by encryption methods. To make a transaction Bitcoin, users have to employ their computerâ€™s computation skills to solve a math problem.