New Delhi: Bitcoin has continued to witness an unstoppable rise on Tuesday with the price of its single unit rising above $50,000 for the first time. ALSO READ | India Opens Access To Geospatial Data And Services; Know How It Will Benefit Start-Ups, Companies
Just a year ago, the Bitcoin would have cost you $10,000 has gone up in price by almost 200% in the last three months.
On Tuesday, the price crossed the $50,000 barrier at least a half dozen times before 10 am.
Popular electric car company Tesla, last Monday, jolted customers as it stated that it was buying 1.5 billion in Bitcoin as part of a new investment strategy. Additionally, it would soon be accepting Bitcoin in exchange for its cars.
Then Blue Ridge Bank of Charlottesville, Virginia, announced to become the first commercial bank to provide access to Bitcoin at its branches. On Wednesday, the regional bank said that cardholders can purchase and redeem Bitcoin at 19 of its ATMs.
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This was followed by BNY Mellon, the oldest bank in the US, saying it would include digital currencies in the services. Mastercard also said that it would start supporting select cryptocurrencies on its network.
Richard Lyons, a finance professor at the University of California at Berkeley, says that the rise of cryptocurrency is inevitable. Lyons predicts Bitcoin and other digital currencies will become transactional currencies increasingly over the next five years. It's not going to happen overnight, he said.
Lee Reiners teaches fintech and cryptocurrency courses at Duke University School of Law, believes that meanwhile companies will remain hesitant to accept Bitcoin for payment because of its volatility.
"If you were a merchant, why would you accept payment in an asset that could be worth 20% less a day after you receive it?" Reiners stated in an email.
(With Agency Inputs)