Bitcoin, a form of digital currency, created and held electronically, has hit a record value of $14bn, having increased in value more than double this year.
According to Reuters, the price of a single bitcoin reached $875 on the European Bitstamp exchange, which is the best the currency has done since January 2014. The currency has doubled from $435 at the beginning of this year.
Most of Bitcoin trading is carried out in China. The currency’s growth has been tied the steady depreciation of the Chinese yuan, which has slid nearly 7% in 2016.
Charles Hayter, founder of data analysis website Cryptocompare, was quoted by Reuters as saying bitcoin had been helped higher by demonetisation in India, and by worldwide political uncertainty.
“If that trend continues, bitcoin is a good thematic play on the fracturing of our global norms as a flight to safety,” Hayter said.
Bitcoin’s value plummeted in August this year after a hacker managed to steal millions from exchange.
Even though bitcoin reached a new market capitalisation high, the price per coin is still below its all-time high of 2013. At that time, one bitcoin traded as high as $1,163 on Bitstamp exchange.
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Last month, the Bitcoin price joined the upward trajectory seen by gold post-Trump win, surging almost 4% as investors look outside of stocks and bonds to seek a safe haven in other assets.
The surge in Bitcoin price was reversal of what was seen after the UK voted leave in the EU Referendum. The Brexit vote saw more than $100 wiped off the price of bitcoin.
