Currently trading above $5,000, industry thought leaders warn of a price bubble burst.
The popular yet controversial digital currency Bitcoins has emerged with its highest price value of above $5,000.
Now trading at $5, 186, compared with $966 at the start of the year, increasing by as much as 750%.
The price of bitcoins has been known to be volatile, falling below $3,000 after Chinese authorities cracked down on the digital currency in September.
Using Bitcoins helps customers bypass banks and traditional payment processes in paying for goods and services. The financial institutions including banks have been concerned about bitcoin’s associations.
Using bitcoin allows people to bypass banks and traditional payment processes to pay for goods and services directly. Banks and other financial institutions have been concerned about bitcoin’s associations with money laundering and online crime.
The soaring value of bitcoin and other cryptocurrencies comes despite growing warnings over a price bubble.
American Financial services holding company JP Morgan boss Jamie Donn says Bitcoins is used by murderers and fraudsters like drug dealers, as well as in places like North Korea, adding that it would eventually blow up.
It is general consensus that bitcoins wouldn’t be made to replace central bank issued currency.
“ It is one thing for governments to allow small anonymous transactions with virtual currencies; indeed, this would be desirable. But it is an entirely different matter for governments to allow large-scale anonymous payments, which would make it extremely difficult to collect taxes or counter criminal activity.”
Despite the warnings, countries like Japan, Indian and Sweden are favoring the virtual currency adoption, celebrities like Floyd Mayweather, Paris Hilton and Jamie Foxx are putting their support behind the digital coin offerings.