On Tuesday, Bitcoin exceeds $50000 for the first time in history.
At around 7:30 a.m., the world’s biggest digital currency by market value rose more than 3 percent to an all-time high of $50,487.
It dropped below the mark later on, selling 0.2% higher at a price of $48,760.
Bitcoin has gained momentum following reports from major corporations including Tesla and Mastercard showing crypto support.
Last week, Tesla announced that it had purchased Bitcoin worth $1.5 billion and expects to accept the digital coin as payment for its goods.
Although Mastercard said that some digital currencies would open up its network.
The rise in the value of Bitcoin has contributed to these developments.
In late 2017, Bitcoin shot up to almost $20,000 before losing over 80 percent of its value the following year.
Bitcoin investors claim that the crash was driven by retail speculation in 2017, with demand from institutional investors fueling the current cycle.
Big multinational businesses such as Mastercard and Tesla are embracing cryptocurrencies this year.
There is also a growing number of financial firms, including Robinhood, Square and PayPal, that facilitate bitcoin trading.
However, amid the success of Bitcoin, critics have raised concerns that coin currency investment is largely speculative and has only gained momentum because investors are looking for easy returns.
Uber said it is not going to invest in digital currencies, but is considering adopting it as a means of payment.
As a potential investment strategy, the investment unit of Morgan Stanley, Counterpoint Global, is looking into Bitcoin and other digital currencies.
While some finance experts have concerns about cryptocurrency, not just because of the uncertainty, but also because of the lack of practical uses of the digital currency.
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